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Income Statement

The following is additional information about Larkspur's transactions during the year ended December $31,2023.$

The cash equivalents are typically term deposits that are very liquid and mature on average in $60$ days. The

bank overdrafts are temporary and reverse within a few days. Larkspur has opted to show these as cash and

cash equivalents on its statement of cash flows.

During the year, preferred shares with a carrying amount of $$18,000$ were converted to common shares.

There were no disposals of buildings during the year $2023.$

Equipment with an original cost of $$46,000$ and carrying amount of $$14,000$ was sold at a loss during the year.

All depreciation and amortization expense is included in operating expenses.

During the year, Larkspur obtained land with a fair value of $$100,000$ in exchange for its preferred shares.

Investment income includes the equity earnings of $$62,000$ from a long$-$term investment accounted for using

the equity method and from interest revenue on the short$-$term investments referred to in note $1$ above. $($a$)$

Prepare the statement of cash flows for the year ended December $31,2023,$ for Larkspur using the indirect

method. Prepare any additional disclosure notes that are required, including a table that shows the details of the

cash and cash equivalents accounts at the end of each period. $($Show amounts that decrease cash flow with

either a negative sign e$.$g$.-15,000$ or in parenthesis e$.$g$.(15,000).$ Do not leave any answer field

blank. Enter $0$ for amounts.$)$

Larkspur Inc.

Statement of Cash Flows $($Indirect Method$)$

For the Year Ended December $31,2023$

Cash Flows from Operating Activities

Adjustments to reconcile net income to Non$-$cash investing and financing activities

Additional disclosures:Cash and Cash Equivalents:

$2023$

$2022$Larkspur Inc. follows IFRS and has adopted the policy of classifying interest paid as operating activities and dividends

paid as financing activities. Comparative general ledger accounts of Larkspur, and its statement of income for the year

ended December $31,2023,$ follow:

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