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 Accounts receivable Inventory Total current assets Equipment Accumulated depreciation, equipment Land $39,000 67,700 74,570 181,270 136,500 (33,930) 93,600 $377,440 $28,470 42,900 79,330 150,700 113,100 (30,420) 132,600 $365,980 $48,520 3,900 Liabilities and shareholders' equity Current liabilities: Accounts payable Dividends payable Total current liabilities Bank loan payable Common shares Retained earnings $35,330 10,140 45,470 78,000 117,000 136,970 $377,440 52,420 109,200 101,400 102,960 $365,980 $339,300 230,100 109,200 HARLEY HOLDINGS LTD. Statement of Income For the year ended January 31, 2020 Sales revenue Cost of goods sold Gross profit Expenses Wages expense $11,860 Depreciation expense 20,670 Rent expense 11,780 Income tax expense 11,470 Operation income Gain on sale of equipment Net income 55,780 53,420 780 $54,200 Additional information: 1. Equipment costing $27,300 was sold for $10,920. Land was sold at cost and none was purchased during the year. 2. (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 $ Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Inventory Depreciation Expense Dividend Paid Gain on Sale of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Inventory Issuance of Common Shares Loss on Sale of Equipment Net Income Proceeds from the Sale of Equipment Proceeds from the Sale of Land Purchase of Equipment Repayment of Bank Loan $ Supplementary disclosures Cash paid for income tax $