(Solution) - From the financial statements and added information provided in Problem -(2025 Original AI-Free Solution)

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From the financial statements and added information provided in Problem 16C-1 for the Empire Company Ltd., prepare a statement of cash flows using the direct method.
In Problem 16C-1
From the following income statement, balance sheet, and added information for Empire Company Ltd., prepare a statement of cash flows using the indirect method.
Empire Company Ltd.
Income Statement
For the Year Ended May 31, 2015

Empire Company Ltd.
Balance Sheet
As of May 31, 2015 and 2014
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Additional Data:
1. All fixed asset additions were paid by cheque.
2. A dividend of $12,000 was paid in cash during the year.
3. Additional preferred and common shares were sold for cash.
4. There were no disposals of capital assets during the year.
5. The company defines cash as including Temporary Investments