Information from the statement of financial position and statement of income are given below for North Road Inc., a company following IFRS, for the year ended December 31. North Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities.

Additional information:
1. Investments in land were sold at a gain during 2017.
2. Equipment costing $56,000 was sold for $10,550, resulting in a gain.
3. Common shares were issued in exchange for some equipment during the year. No other shares were issued.
4. The remaining purchases of equipment were paid for in cash.
Instructions
(a) Prepare a statement of cash flows for the year ended December 31, 2017, using the indirect method.
(b) Prepare the operating activities section of the statement of cash flows using the direct method.
(c) If North Road Inc. had followed ASPE, would it have a choice in how it classifies dividends paid on the statement of cash flows?

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Comparative Statement of Financial Position, at December 31 2017 2016 Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation $92,700 90,800 121,900 84,500 290,000 (49,500) $630,400 $ 47,250 37,000 102,650 107,000 205,000 (40,000) $458,900 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings 52,700 12,100 140,000 250,000 175,600 $630,400 $ 48,280 18,830 70,000 200,000 121,790 $458,900 Statement of Income, Year Ended December 31, 2017 Revenues Sales Gain on sale of investment in land Gain on sale of equipment $297,500 5,000 3,750 306,250 Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense $99,460 58,700 14,670 39,000 2,940 214,770 $91.480 Net income