The following information is provided for Charlie’s Chocolate Corporation, which reports under ASPE: 

Additional information: 

1. Profit for 2024 was $113,625. 

2. Common shares were issued for $51,250. 

3. Land with a cost of $51,250 was sold at a loss of $19,300. 

4. Purchased land with a cost of $103,000 with a $56,250 down payment and financed the remainder with a mortgage note payable. 

5. No equipment was sold during 2024. 

6. Net sales for the year were $673,600. 

7. Cost of goods sold for the year was $399,800. 

8. Operating costs, including depreciation expense, were $97,700. 

9. Interest expense was $5,300. 

10. Income tax expense was $37,875. 

11. Accounts payable is used for merchandise purchases. 

Instructions 

Prepare a cash flow statement for the year using the direct method. Taking It Further Indicate what transactions might be classified differently if the company were reporting under IFRS instead of ASPE.

Indicate what transactions might be classified differently if the company were reporting under IFRS instead of ASPE

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Assets Cash Accounts receivable Inventory Prepaid expenses Land CHARLIE'S CHOCOLATE CORP. Balance Sheet May 31 Equipment Accumulated depreciation-equipment Total assets Liabilities and Shareholders' Equity Accounts payable Dividends payable Income tax payable Mortgage payable Common shares Retained earnings Total liabilities and shareholders' equity 2024 $ 30,675 86,550 178,000 5,300 128,250 313,000 (71,200) $670,575 $ 41,950 6,800 2,500 125,000 215,500 278,825 $670,575 2023 $ 45,250 77,250 158,250 6,800 76,500 193,000 (38,250) $518,800 $ 38,250 5,300 6,300 78,250 164,250 226,450 $518,800