The net changes in the statement of financial position accounts of Sohar Services, Inc. for the year 2016 are shown below: Account Debit Credit Cash $ 125,600 Accounts receivable $ 64,000 Allowance for doubtful accounts 14,000 Inventory 217,200 Prepaid expenses 30,000 Long-term investments 144,000 Land 300,000 Buildings 600,000 Machinery 100,000 Office equipment 28,000 Accumulated depreciation: Buildings 24,000 Machinery 20,000 Office equipment 12,000 Accounts payable 183,200 Accrued liabilities 72,000 Dividends payable 128,000 Bonds payable 832,000 Share capital-Preference ($50 par) 60,000 Share capital-ordinary ($10 par) 379,200 Share premium-ordinary 223,200 Retained earnings 77,200

Additional information: 1. Net income for 2016 $150,000 2. Cash dividends of $128,000 were declared December 15, 2016, payable January 15, 2017. A 5% share dividend was issued March 31, 2016, when the fair value was $22.00 per share. 3. The long-term investments were sold for $140,000. 4. A building and land which cost $480,000 and had a book value of $300,000 were sold for $400,000. The cost of the land, included in the cost and book value above, was $20,000. 5. The company exchanged an old machine which has a cost of $60,000 and an accumulated depreciation of $40,000 with a new machine with a fair value of $160,000. The company paid $140,000 cash in relation to the exchange. 6. A fully depreciated printing machine which cost $28,000 was written off. 7. Preference shares of $60,000 par value were called for $80,000. 8. The company sold 12,000 shares of its ordinary share (no par) during 2016 for $25 a share. There were 87,600 shares outstanding on December 31, 2016. 9. Bonds were sold at 104 on December 31, 2016. 10. Land was sold for $108,000. It had a book value of $240,000.

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Q6 contd Required For Sohar Services Inc.: Prepare the Cash Flow Statement for 2016 in the correct format using the indirect method