Comparative Balance sheet as at December 31, 20x4

20x4 20x3

Cash and cash equivalents $86,300 $125,000

Accounts receivable net 789,200 . 645,850

Inventory 1,432,000 1,536,000

Prepaid expenses 34,000 47,500

Notes receivable 625,156 602,977

PPE 6,207,120 5,626,540

Accumulated depreciation (2,847,100) (2,536,800)

FVTOCI Investments 155,000 333,000

Accounts payable $563,500 $468,000

Accrued liabilities 112,300 126,700

Wages payable 42,400 56,800

Income taxes payable 87,500 75,600

Long-term liabilities 1,000,000 1,600,000

Common stock 2,500,000 2,500,000

Retained earnings 2,218,176 1,538,967

A*OCI on FVTOCI Investments (30,000) 14,000

Statement of Comprehensive Income For the year ended December 31, 20x4

Revenue $9,835,000

Cost of goods sold (4,325,600)

Operating expenses (1,345,900)

Employee benefits expense (1,456,700)

Depreciation expense (736,300)

Gain on sale of PPE 46,500

Bad debt expense (33,800)

Income tax expense (698,390)

Net income 1,284,810

OCI Fair value loss on FVTOCI Investments (15,000)

Comprehensive Income $1,269,810

Additional Information

1. The allowance for doubtful accounts at December 31, 20x3 and 20x4 was $19,500 and $25,700 respectively.

2. During the year, a building that cost $650,000 was sold.

3. A total of $6,700 of accounts receivable written off during 20x3 were recovered during 20x4.

4. There is one note receivable outstanding. The note was issued on December 31, 20x2. The face value of the note is $700,000 and is repayable on December 31, 20x7. The note requires interest payment of 2% each December 31st . Interest revenue on the note is included in revenues.

5. One investment classified as FVTOCI was sold. No investments were purchased during the year.

Question:Prepare a statement of cash flow for the year ended December 31, 20x4. Calculate the cash flow from operations using both the indirect and indirect methods.