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The comparative unclassified statement of financial position for Ivanhoe Ltd. follows: IVANHOE LTD. Statement of Financial Position December 31 Assets 2018 2017 Cash $58,000 $23,000 Accounts receivable 83,000 63,500 Inventory 181,000 199,000 Long-term investments 73,000 130,000 Equipment 260,000 160,000 G Accumulated depreciation (69,000) (38,000) Total assets $586,000 $537,500 Liabilities and Shareholders' Equity Accounts payable $31,000 $ 48,000 Bank loan payable 121,000 185,500 Common shares 217,000 174,000 Retained earnings 217,000 130,000 Total liabilities and shareholders' equity $586,000 $537,500 Additional information: 1. Net income was $125,900. 2. Sales were $996,000. 3. Cost of goods sold was $756,000. 4. Operating expenses were $49,000, exclusive of depreciation expense. 5. Depreciation expense was $31,000. 6. Interest expense was $13,000. 5. Depreciation expense was $31,000. 6. Interest expense was $13,000. 7. Income tax expense was $27,000. 8. Long-term investments were sold at a gain of $5,900. 9. No equipment was sold during the year. 10. $64,500 of the bank loan was repaid during the year. 11. Common shares were issued for $43,000. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - - signes. -15,000 or in parenthesis e.g. (15,000).) IVANHOE LTD. Statement of Cash Flows-Direct Method Year Ended December 31, 2018 Cash, December 31 Cash payments $ V $ Cash, January 1 D A

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