The comparative unclassified statement of financial position for Ivanhoe Ltd. follows: IVANHOELTD. Statement of Financial Position December 31 Assets 2021 Cash $58,000 Accounts receivable 83,000 Inventory 176,000 Estimated inventory returns 5,000 Long-term investments 73,000 Equipment 260,000 Accumulated depreciation (79,000) Total assets $576,000 2020 $23,000 73,500 186,000 3,000 130,000 160,000 (38,000) $537,500 Liabilities and Shareholders' Equity Accounts payable Refund liability Bank loan payable (noncurrent) Common shares Retained earnings Total liabilities and shareholders' equity $26,000 9,000 107,000 217,000 217,000 $576,000 $ 42,000 6,000 185,500 174,000 130,000 $537,500 Additional information pertaining to 2021: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. Net income was $115,900. Sales were $996,000 Cost of goods sold was $756,000. Operating expenses were $49,000, exclusive of depreciation expense. Depreciation expense was $41,000. Interest expense was $13,000. Income tax expense was $27,000. Long-term investments were sold at a gain of $5,900. No equipment was sold during the year. $78,500 of the bank loan was repaid during the year. Common shares were issued for $43,000. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -45,000, or in parenthesis e.g. (45,000).) IVANHOE LTD. Statement of Cash Flows-Indirect Method Year Ended December 31, 2021 Cash flows from operating activities $ 115900 Net income Adjustments to reconcile net income to Cash flows from operating activities Loss on sale of long-term investments V $ Gain on sale of long-term investments > Net decrease in cash Repayment of bank loan