To prepare the cash flow statement, accountants for West Boats Ltd. have summarized 2020 activity in two T-accounts as follows:

West Boats Ltd.’s 2020 income statement and selected balance sheet data follow:

Required

1. Prepare West Boats Ltd.’s cash flow statement for the year ended October 31, 2020, using the direct method to report operating activities. Also prepare a note to the financial statements summarizing the non-cash investing and financing activities.

2. Prepare a schedule showing cash flows from operating activities using the indirect method. All activity in the current accounts results from operations.

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Cash Beginning balance Sale of common shares 87,100 Payments of operating expenses Payment of long-term debt Repurchase of common shares Payment of income tax 22,200 Payments on accounts payable 307,000 Payments of dividends 46,100 78,900 80,800 Receipts of dividends 17,900 30,400 Sale of investments 28,400 6,000 Receipts of interest 101,600 Collections from customers 16,000 67,500 Payments of salaries and wages Payments of interest Purchase of equipment 41,800 79,900 Ending balance 75,200 Common Shares Repurchase of common shares 30,400 Beginning balance 103,500 Issuance for cash 80,800 64,500 Issuance to acquire land Issuance to retire long-term debt Ending balance 31,600 250,000