Brigitte’s Bathrooms Ltd.’s balance sheet for the year ended December 31, 2021, follows: 

Additional information:

■ During the year, Brigitte declared and paid cash dividends of $50,000. They also declared and distributed stock dividends valued at $20,000.

■ Brigitte bought and sold land during the year. The land that was sold for $200,000 originally cost $250,000.

■ Brigitte’s long-term investment consists of holding ordinary shares in one company (GFF Services Inc.). For most of the year, Brigitte owned 50,000 of the 200,000 ordinary shares outstanding. GFF’s net income for the year (which ended December 15) was $40,000. GFF’s income from December 16 to December 31 was not material. The company paid dividends of $100,000 on December 15. Brigitte bought additional shares in GFF on December 31.

■ A gain of $25,000 was realized on the sale of a building that cost $200,000. Accumulated depreciation at time of sale was $150,000.

■ Brigitte borrowed money from a finance company, which accounted for the increase in notes payable.

■ The company’s expenses for the year included $40,000 for income tax and $30,000 for interest.

■ Brigitte’s policy is to report investment income and interest paid in the cash flows from operating activities section, while dividends paid are classified as a cash outflow from financing activities.

Required:

a. Prepare a statement of cash flows for Brigitte’s Bathrooms Ltd. for 2021 using the indirect method.

b. Identify what supplemental disclosure, if any, is required.

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Assets Cash Accounts receivable Brigitte's Bathrooms Ltd. Comparative Balance Sheet As at Year Ended December 31 2021 $ 17,000 104,000 2020 $ 43,000 90,000