Additional information 1. No FV-NI investments were purchased or sold. These investments are not cash equivalents. 2. A partially depreciated building was sold for an amount equal to its net book value. 3. Cash of $40,000 was received on the sale of a machine whose original cost was $135,000. Other machinery was purchased for cash. 4. Preferred shares were issued for cash on March 1, 2020. Dividends of $50,000 were paid on these shares in 2020. 5. On September 1, 2020, 25,000 common shares were purchased and retired. The shares had an average issuance price of $55,000 and were repurchased for $57,000. On November 1, 2020, 65,000 common shares were issued in exchange for machinery.

Required: Prepare a statement of cash flows for Wang Inc. for the year ended December 31, 2020 using the indirect method. Wang follows IFRS and has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities.

1.Prepare the operating activities section of the statement of cash flows

2.Prepare the investing activities section of the statement of cash flows.

3.Prepare the financing activities section of the statement of cash flows.

4.Reconcile the change in cash during 2020

The following financial information is available for Wang Incorporated for the 2020 fiscal year: Statement of Financial Position As at 31 December 2020 2019 Cash $ 5,000 $ 20,000 Accounts receivable 270,000 180,000 FV-NI investments 190,000 230,000 Inventory 731,000 632,000 Land 330 000 410,000 Building 1,040,000 1,120,000 Accumulated depreciation, building (470,000) (380,000) Machinery 1,080,000 875,000 Accumulated depreciation, machinery (219,000) (212,000) Goodwill 50,000 110,000 $3.007.000 $2.985.000 Current liabilities $ 52,000 $ 90,000 Bonds payable 1,000,000 1,000,000 Discount on bonds (10,000) (15,000) Deferred income tax 24,000 66,000 Preferred shares 1,048,000 843,000 Common shares 755,000 690,000 Retained earnings 138,000 311,000 $3.007.000 $2.985.000 Statement of Earnings and Comprehensive Income For the Year Ended 31 December 2020 Sales $1,684,000 Cost of goods sold 1,103,000 Gross profit 581,000 Depreciation Building 110,000 Machinery 75,000 Goodwill impairment 60,000 Interest 115,000 Other expenses 311,000 Investment loss: decrease in fair value of FV-NI 40,000 investments Gain on sale of land (22,000) Loss on sale of machine 27,000 716,000 Earnings (loss) before income tax (135,000) Income tax recovery 54,000 Earnings (loss) and comprehensive loss $_(81.000)