The comparative, unclassified statement of financial position for Ivanhoe Ltd. shows the following balances at December 31:

Ivanhoe Ltd. Statement of Financial Position December 31
Assets		2018			2017
Cash		$ 18,000			$ 39,000
Term deposits (maturing in 60 days)		0			41,000
Accounts receivable		78,000			41,000
Inventory		104,000			73,000
Land		185,000			230,000
Buildings		902,000			525,000
Accumulated depreciationbuildings		(137,000	)		(191,000	)
Equipment		104,000			74,000
Accumulated depreciationequipment		(38,000	)		(19,000	)
Total assets		$1,216,000			$813,000
Liabilities and Shareholders Equity
Accounts payable		$ 27,000			$ 74,000
Income tax payable		4,000			8,000
Interest payable		22,000			15,000
Bank loan payablecurrent portion		51,000			42,000
Bank loan payablenon-current portion		900,000			422,000
Common shares		165,000			180,000
Retained earnings		47,000			72,000
Total liabilities and shareholders equity		$1,216,000			$813,000

Additional information regarding 2018:

1.		Net income was $12,000.
2.		A loss of $21,000 was recorded on the disposal of a small parcel of land. No land was purchased during the year.
3.		A gain on the disposal of $19,000 was recorded when old building was sold for was sold for $41,000 cash. A new building was purchased for $500,000 and depreciation expense on buildings for the year was $47,000.
4.		Equipment costing $77,000 was purchased while a loss of $12,000 was recorded on equipment that originally cost $47,000 and was sold for $21,000.
5.		The company received $512,000 from new bank loans during the year.
6.		Dividends were declared and paid during the year.
7.		No common shares were issued during the year but some were bought back and retired at the amount they were originally issued at.

(a) Prepare the statement of cash flows using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

IVANHOE LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2018 Cash flows from operating activities Net income 12000 Adjustments to reconcile net income to Cash and cash equivalents, December 31 Loss on disposal of land 21000 Gain on disposal of building (19000) Depreciation expense Increase in interest payable 7000 Loss on disposal of equipment 12000 Increase in accounts receivable (37000) Increase in inventory (31000) Decrease in accounts payable (47000) Decrease in income tax payable (4000) Net cash used by operating activities Cash flows from investing activities Proceeds from disposal of land Proceeds from disposal of building Purchase of building Purchase of equipment Proceeds from disposal of equipment Net cash used by investing activities - Cash flows from financing activities Cash flows from financing activities Additions to bank loan Repayments of bank loan Dividends paid Repurchase of common shares Net cash provided by financing activities Net decrease in cash Cash and cash equivalents, January 1 Cash and cash equivalents, December 314