You have been provided with the following comparative information from the December 31, 2016 Statement of Financial Position for Kabakwa Resource Management Ltd.:

REQUIRED

Prepare in good form a Statement of Cash Flow for the year ended December 31, 2016. Kabakwa uses the indirect method to report cash flow from operations.

Kabakwa Resource Management Ltd. Information from Statement of Financial Position 2016 2015 Assets Cash Accounts Receivable Prepaid Insurance Land Equipment at cost Accumulated Depreciation $ 39,000 73,000 13,000 18,000 70,000 (20,000) 193,000 $ 31,000 60,000 17,000 40,000 60,000 (13,000) 195,000 Accounts Payable Bonds Payable Common Shares Retained Earnings 11,000 21,000 140,000 21,000 193,000 6,000 19,000 115,000 55,000 195,000 Additional information for 2016: 1. Net loss for 2016 is $15,000 2. In the current year, Kabakwa Resource Management Ltd., sold land for cash resulting in a gain $6,000. This was the only land transaction during the year. 3. Equipment with a cost of $15,000 and accumulated depreciation of $10,000 was sold for $5,000 cash. 4. $12,000 of bonds were retired during the year at their carrying amount. In addition, some bonds payable were issued for cash. 5. Equipment was acquired for common shares. The fair value of the shares at the time of the exchange was $25,000