Refer to the information presented in PA-9. Assume that Hobnob Corp. is a private corporation that elects

Question:

Refer to the information presented in PA-9. Assume that Hobnob Corp. is a private corporation that elects to report its financial results in accordance with ASPE.

Data from PA-9

Net income after taxes for 2018 totalled $125,000.
Declared and issued a stock dividend valued at $50,000.
Accounts receivable decreased $32,000 in 2018.
Sold an at fair value through profit or loss investment for $12,000. The book value was $10,000.
Interest revenue for the period was $12,000. The interest receivable account decreased $3,000.
Declared a $20,000 dividend payable. The dividends payable account decreased $12,000 in 2018.
Sold an at fair value through other comprehensive income investment for $8,000. The book value was $9,000.
Hobnob recorded a $10,000 goodwill impairment loss during the year.
Depreciation expense for the year was $8,000.

Required:
a. Prepare the cash flows from operating activities section of the cash flow statement using the indirect method.
b. Identify how the activities listed above that are not operating activities would be reported in the cash flow statement.

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