The comparative unclassified statement of financial position for Puffy Ltd. Follows:
Additional information:
1. Profit was $104,880.
2. Sales were $970,160.
3. Cost of goods sold was $751,130.
4. Operating expenses were $43,950, exclusive of depreciation expense.
S. Depreciation expense was $35,810.
6. Interest expense was $14,240.
7. Income tax expense was $25,720.
8. Land was sold at a gain of $5,570.
9. No equipment was sold during the year.
10. $64,620 of the bank loan was repaid dunng the year.
11. Common shares were issued for $27,000.
Prepare a statement of cash flows using the direct method.
