5XU Corp., a major retailer of athletic equipment and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative statement of financial position and income statement for 5XU Corp.as at May 31, 2020 are as follows:

5XU Corp.

Statement of Financial Position

As at May 31

2020

2019

Current assets

Cash

$ 33,250

$ 20,000

Accounts receivable

74,800

55,600

Inventory

188,700

199,000

Prepaid expenses

8,800

7,000

Total current assets

305,550

281,600

Plant assets

596,500

501,500

Less: Accumulated depreciation

148,000

122,000

Net plant assets

448,500

379,500

Total assets

$754,050

$661,100

Current liabilities

Accounts payable

$123,000

$115,000

Salaries and wages payable

61,000

72,000

Interest payable

24,700

22,600

Total current liabilities

208,700

209,600

Mortgage payable

75,000

100,000

Total liabilities

283,700

309,600

Shareholders' equity

Common shares

335,750

280,000

Retained earnings

134,600

71,500

Total shareholders' equity

470,350

351,500

Total liabilities and shareholders' equity

$754,050

$661,100

5XU Corp.

Income Statement

For the Year Ended May 31, 2020

Sales

$1,345,800

Cost of goods sold

814,000

Gross margin

531,800

Expenses

Salaries and wages expense

207,800

Interest expense

66,700

Other operating expenses

24,800

Depreciation expense

26,000

Total operating expenses

325,300

Operating income

206,500

Income tax expense

65,400

Net earnings

$141,100

The following is additional information about transactions during the year ended May 31, 2020 for 5XU Corp., which follows IFRS:

a.Plant assets costing $95,000 were purchased by paying $44,000 in cash and issuing 5,000 common shares.

b.The "other expenses" relate to prepaiditems.

c.In order to supplement its cash, 5XU Corp. issued 4,000 additional commonshares.

d.There were no penalties assessed for the repayment ofmortgage.

e.Cash dividends of $78,000 were declared and paid at the end of the fiscalyear.

Required

a. Prepare statement of cash flows for 5XU Corp. for the year ended May 31, 2020, using the direct method. Support the statement with appropriate calculations and provide all required disclosures.