Refer to the financial information presented in P13.2A for Whistler Ltd., a private company following ASPE.
In P13.2A
WHISTLER LTD.
Income Statement
Year Ended November 30, 2018
Sales........................................................$8,000,000
Cost of goods sold....................................5,000,000
Gross profit...............................................3,000,000
Operating expenses...................................2,000,000
Income from operations............................1,000,000
Interest expense...........................................100,000
Income before income tax...........................900,000
Income tax expense.....................................300,000
Net income...............................................$ 600,000
Instructions
(a) Prepare the operating activities section of the statement of cash flows, using the direct method.
(b) Would your answer in part (a) change if Whistler were a public company following IFRS?