Information from the statement of financial position and statement of income is given below for North Road Inc., a company following IFRS, for the year ended December 31. North Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 

Additional information: 

1. Investments in land were sold at a gain during 2020.

 2. Equipment costing $56,000 was sold for $10,550, resulting in a gain. 

3. Common shares were issued in exchange for some equipment during the year. No other shares were issued. 

4. The remaining purchases of equipment were paid for in cash. 

Instructions 

a. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. 

b. Prepare the operating activities section of the statement of cash flows using the direct method. 

c. If North Road Inc. had followed ASPE, would it have a choice in how it classifies dividends paid on the statement of cash flows?

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Comparative Statement of Financial Position, at December 31 2020 2019 Cash $ 92,700 $ 47,250 Accounts receivable 90,800 37,000 Inventory 121,900 102,650 Investments in land 84,500 107,000 Property, plant, and equipment 290,000 205,000 Accumulated depreciation (49,500) (40,000) $630,400 $458,900 Accounts payable $ 52,700 $ 48,280 Accrued liabilities 12,100 18,830 Notes payable 140,000 70,000 Common shares 250,000 200,000 Retained earnings 175,600 121,790 $630,400 $458,900