The statement of income for Ivanhoe Ltd., a private company reporting under ASPE, is presented here:

IVANHOE LTD. Statement of Income Year Ended November 30, 2021
Sales		$8,100,000
Cost of goods sold		4,350,000
Gross profit		3,750,000
Operating expenses		2,040,000
Income from operations		1,710,000
Interest expense		140,000
Income before income tax		1,570,000
Income tax expense		340,000
Net income		$1,230,000

Additional information regarding 2021:

1.		Operating expenses include $75,000 of depreciation expense and a $110,000 impairment loss on property, plant, and equipment.
2.		Accounts receivable increased by $186,000.
3.		Inventory decreased by $52,000.
4.		Prepaid expenses related to operating expenses increased by $50,000.
5.		Accounts payable to suppliers of inventory decreased by $188,000.
6.		Rent payable related to operating expenses decreased by $91,000.
7.		Interest payable decreased by $20,000.
8.		Deferred revenue received from customers decreased by $24,000.
9.		Income tax payable increased by $21,000.

(a) Prepare the operating activities section of the statement of cash flows, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

IVANHOE LTD. Statement of Cash Flows (Partial) Year Ended November 30, 2021
Operating activities
Decrease in accounts receivableIncrease in prepaid expensesIncrease in interest payableIncrease in inventoryDecrease in deferred revenueIncrease in accounts payableIncrease in accounts receivableNet IncomeDecrease in inventoryDecrease in accounts payableDecrease in income tax payableDecrease in prepaid expensesIncrease in income tax payableDepreciation expenseDecrease in interest payableDecrease in rent payableIncrease in rent payableIncrease in deferred revenue		$
Adjustments to reconcile net income to
Cash at beginning of periodCash at end of periodCash flows from financing activitiesCash flows from investing activitiesCash flows from operating activitiesNet cash provided by financing activitiesNet cash provided by investing activitiesNet cash provided (used) by operating activitiesNet cash used by financing activitiesNet cash used by investing activitiesNet decrease in cashNet increase in cash
Impairment loss on property, plant and equipmentIncrease in accounts receivableDecrease in rent payableDecrease in interest payableDecrease in accounts payableDecrease in accounts receivableIncrease in accounts payableNet IncomeDecrease in deferred revenueDecrease in inventoryDecrease in prepaid expensesIncrease in rent payableDecrease in income tax payableIncrease in income tax payableIncrease in deferred revenueIncrease in inventoryIncrease in interest payableDepreciation expenseIncrease in prepaid expenses	$
Decrease in accounts receivableDecrease in deferred revenueDecrease in inventoryNet IncomeIncrease in inventoryDecrease in interest payableDepreciation expenseDecrease in income tax payableIncrease in prepaid expensesIncrease in interest payableImpairment loss on property, plant and equipmentIncrease in accounts receivableDecrease in accounts payableDecrease in rent payableIncrease in income tax payableDecrease in prepaid expensesIncrease in rent payableIncrease in deferred revenueIncrease in accounts payable
Impairment loss on property, plant and equipmentIncrease in accounts payableIncrease in deferred revenueIncrease in accounts receivableDecrease in rent payableIncrease in inventoryDecrease in deferred revenueDecrease in interest payableIncrease in prepaid expensesIncrease in income tax payableDecrease in accounts receivableIncrease in interest payableDecrease in prepaid expensesNet IncomeDecrease in income tax payableIncrease in rent payableDepreciation expenseDecrease in accounts payableDecrease in inventory
Increase in accounts receivableIncrease in prepaid expensesIncrease in interest payableDecrease in rent payableImpairment loss on property, plant and equipmentIncrease in rent payableNet IncomeDepreciation expenseIncrease in inventoryIncrease in deferred revenueDecrease in interest payableDecrease in accounts payableDecrease in income tax payableDecrease in prepaid expensesDecrease in inventoryIncrease in accounts payableDecrease in deferred revenueIncrease in income tax payableDecrease in accounts receivable
Decrease in deferred revenueDecrease in inventoryDecrease in accounts payableDecrease in prepaid expensesDecrease in interest payableIncrease in income tax payableIncrease in prepaid expensesNet IncomeIncrease in rent payableIncrease in accounts receivableIncrease in interest payableDecrease in income tax payableDecrease in accounts receivableIncrease in deferred revenueDepreciation expenseIncrease in inventoryImpairment loss on property, plant and equipmentIncrease in accounts payableDecrease in rent payable
Decrease in prepaid expensesDecrease in interest payableIncrease in accounts payableDecrease in accounts payableIncrease in prepaid expensesIncrease in inventoryDecrease in rent payableDecrease in deferred revenueDepreciation expenseIncrease in rent payableIncrease in interest payableDecrease in income tax payableDecrease in inventoryIncrease in accounts receivableIncrease in income tax payableNet IncomeDecrease in accounts receivableIncrease in deferred revenueImpairment loss on property, plant and equipment
Decrease in prepaid expensesDecrease in inventoryIncrease in accounts receivableIncrease in accounts payableDecrease in interest payableDecrease in income tax payableDepreciation expenseIncrease in prepaid expensesDecrease in deferred revenueDecrease in accounts receivableDecrease in accounts payableIncrease in rent payableImpairment loss on property, plant and equipmentIncrease in interest payableNet IncomeIncrease in inventoryIncrease in deferred revenueDecrease in rent payableIncrease in income tax payable
Increase in accounts receivableDecrease in deferred revenueIncrease in income tax payableDecrease in income tax payableDecrease in inventoryIncrease in inventoryImpairment loss on property, plant and equipmentDecrease in prepaid expensesIncrease in prepaid expensesDecrease in interest payableDecrease in accounts payableDecrease in rent payableDepreciation expenseIncrease in rent payableIncrease in deferred revenueNet IncomeDecrease in accounts receivableIncrease in interest payableIncrease in accounts payable
Increase in deferred revenueIncrease in accounts receivableDecrease in prepaid expensesIncrease in accounts payableIncrease in prepaid expensesIncrease in interest payableDecrease in inventoryDecrease in interest payableImpairment loss on property, plant and equipmentNet IncomeDecrease in accounts payableIncrease in income tax payableDecrease in deferred revenueIncrease in rent payableDecrease in accounts receivableDecrease in income tax payableDepreciation expenseIncrease in inventoryDecrease in rent payable
Decrease in interest payableDecrease in deferred revenueImpairment loss on property, plant and equipmentIncrease in accounts payableIncrease in rent payableIncrease in interest payableDecrease in inventoryIncrease in inventoryDecrease in income tax payableIncrease in deferred revenueNet IncomeDecrease in accounts payableDecrease in rent payableDecrease in accounts receivableIncrease in accounts receivableDecrease in prepaid expensesIncrease in prepaid expensesIncrease in income tax payableDepreciation expense
Cash at beginning of periodCash at end of periodCash flows from financing activitiesCash flows from investing activitiesCash flows from operating activitiesNet cash provided by financing activitiesNet cash provided by investing activitiesNet cash provided by operating activitiesNet cash used by financing activitiesNet cash used by investing activitiesNet cash used by operating activitiesNet decrease in cashNet increase in cash		$

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