Selected accounts from the SFP of Norelco Limited at 31 December 20X4 and 20X5 are presented below. Norelco reported earnings of $ 280,000 in 20X5. There was a new $ 140,000 of notes payable this year that was direct financing ( a note issued by the vendor) for a piece of machinery.

Required:
List the items that would be included in the SCF from these accounts for 20X5. Include the appropriate section (operating, investing, or financing). List the non- cash item disclosure. Make logical assumptions about unexplained changes in accounts.

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As at 31 December 20X5 20X4 Notes payable, long-term Common shares $450,000 300,000 610,000 $700,000 230,000 540,000 Retained earnings