The following information is for Harley Holdings Ltd. for the year ended January 31, 2020 HARLEY HOLDINGS LTD. Statement of Financial Position As at January 31 2020 2019 Assets Current assets: Cash $56,000 $40,880 Accounts receivable 97,220 61,600 Inventory 107,070 113,900 Total current assets 260,290 216,380 Equipment 196,000 162,400 Accumulated depreciation, equipment (48,720) (43,680) Land 134,400 190,400 $541,970 $525,500 Liabilities and shareholders' equity Current liabilities: Accounts payable $50,740 $69,660 Dividends payable 14,560 5,600 Total current liabilities 65,30075,260 Bank loan payable 112,000 156,800 Common shares 168,000 145,600 Retained earnings 196,670 147,840 $541,970 $525,500 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue $487,200 Cost of goods sold 330,400 Gross profit 156,800 Expenses Wages expense $17,020 Depreciation expense 29,680 Rent expense 16,910 Income tax expense 16,460 80,070 Operation income 76,730 Gain on sale of equipment 1,120 Net income $77,850 Additional information: 1. 2. Equipment costing $39,200 was sold for $15,680. Land was sold at cost and none was purchased during the year. (a1) Using the above information, prepare the statement of cash flows for Harley Holdings Ltd. for the year ended January 31, 2020, using indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) HARLEY HOLDINGS LTD. Statement of Cash Flows, Indirect Method For the Year Ended January 31, 2020 Supplementary disclosures Cash paid for income tax