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ULOIONIVE (23 points, Page 14 of 17 45 minutes) The 2017 financial statements of Donovan, Inc. are presented below (all amounts are in thousands of
ULOIONIVE (23 points, Page 14 of 17 45 minutes) The 2017 financial statements of Donovan, Inc. are presented below (all amounts are in thousands of Canadian dollars). Cash Accounts receivable, net Inventory Long-term investment Plant & Equipment 2017 2016 $64 $48 58 40 49 53 99 615 100 550 Accumulated depreciation - Plant & equipment (170) (50) Land 82 $789 $748 Accounts payable Loan payable Common shares Retained earnings S107 S136 100 480 400 80 122 112 $789 S748 Revenues and gains Cost of goods sold Depreciation expense - plant&equipment Other expenses Loss on sale of plant Net income $540 240 30 240 20 Other information Donovan's long-term investment is accounted for using FVTPL. No long-term investments were bought or sold during the year 1. 2. The company sold plant assets during the year that had originally cost $100. 3. The loan payable is due to be repaid in 2022. 4. The company issued common shares during the year in exchange for plant assets. other shares were issued during the year. 5. Donovan treats dividends and interest received as operating cash flows. Dividends paid 6. Donovan's fiscal year end is December 31. Required: are treated as financing cash flows; and interest paid is treated as an operating cash flow. Prepare in good form the 2017 statement of cash flows, using the indirect method. Abbreviations are acceptable as long as the meaning is clear. Use page 15 for your rough work. Use page 16 for your final answer. Show and clearly label supporting calculations, cross referenced to items in your statement of cash flows to be eligible for partial credit
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