Financial information for Robinson Inc. follows:

Additional information:

• Ordinary shares were redeemed during the year at their book value.
• The face value of the bonds is $400,000; they pay a coupon rate of 7% per annum. The effective interest rate of interest is 6% per annum.
• Net income was $100,000.
• There was an ordinary stock dividend valued at $20,000 and cash dividends were also paid.
• Interest expense for the year was $100,000. Income tax expense was $50,000.
• Robinson arranged for a $500,000 bank loan to finance the purchase of equipment.
• Robinson sold equipment with a net book value of $150,000 (original cost $200,000) for $180,000 cash.
• Robinson acquired equipment costing $250,000 under a finance lease.
• Robinson has adopted a policy of reporting cash flows arising from the payment of interest and dividends as operating activities.
• The at fair value through profit or loss investments are cash equivalents.

Required:
a. Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
b. Discuss how the transaction(s) above that are not reported on the statement of cash flows are reported in the financial statements.

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Robinson Inc. Balance Sheets As at December 31, 2013 and 2014 2014 2013 Assets $ 600,000 $ 400,000 Cash Accounts receivable 1,100,000 1,300,000 Inventory 400,000 600,000 Investments-at fair value through profit or loss 200,000 Investments-financial asset at amortized cost 100,000 Property, plant, and equipment 4,200,000 3,400,000 Accumulated depreciation (2,000,000) (1,500,000) Total $ 4,600,000 $ 4,200,000 Liabilities and shareholders' equity $ 100,000 $ 150,000 Accounts payable Bank loans 2,700,000 2,400,000 Bonds payable 413,860 416,849 Preferred shares 300,000 Ordinary shares 300,000 400,000 Retained earnings 786,140 $ 4,600,000 833,151 $ 4,200,000 Total