The comparative unclassified statement of financial position for Puffy Ltd. follows: PUFFY LTD. Statement of Financial Position: December 31 Assets Cash Accounts receivable Merchandise inventory Land Equipment Accumulated depreciation Additional information: Total assets Liabilities and Shareholders' Equity Accounts payable Bank loan payable $ 39,000 $47,000 150,000 200,000 199,000 174,000 Common shares Retained earnings 199,000 134,000 Total liabilities and shareholders' equity $587,000 $555,000 1. Profit was $115,000. 2. Sales were $978,000. 3. Cost of goods sold was $751,000. 4. 5. 2019 2018 6. Interest expense was $14,000. 7. Income tax expense was $26,000. 8. Land was sold at a gain of $5,000. $ 53,000 $22,000 80,000 76,000 185,000 189,000 70,000 100,000 265,000 200,000 (66,000) (32,000) $587,000 $555,000 Operating expenses were $43,000, exclusive of depreciation expense. Depreciation expense was $34,000. 9. No equipment was sold during the year. 10. $50,000 of the bank loan was repaid during the year. 11. Common shares were issued during the year. Instructions Prepare a statement of cash flows using the indirect method.