The following information is available for Ravencroft Ltd for the year ended December 31, 2025.
| Item | Amount |
|---|
| Net income | $90,000 |
| Depreciation expense | 25,000 |
| Increase in accounts receivable | 12,000 |
| Decrease in inventory | 8,000 |
| Increase in accounts payable | 4,000 |
Additional information:
- New equipment was purchased for $70,000 cash.
- Ordinary shares were issued for $40,000 cash.
- Cash dividends of $30,000 were paid.
- Cash and cash equivalents were $30,000 at January 1, 2025.
Required: Prepare a statement of cash flows for 2025 using the indirect method (IAS 7).