Comparative SFP accounts of Jensen Limited, which follows IFRS, appear below:

6C Data from Jensen's 2020 Income Statement follow:

Debit Balances 2020 2019

Cash $ 80,000 $ 51,000

FV-NI Investments 59,000 80,000

Accounts Receivable 138,500 119,000

Inventory 75,000 61,000

Deferred Tax Asset 6,500 11,000

Equipment 70,000 48,000 Buildings 145,000 145,000

Land 40,000 25,000

Total $ 614,000 $ 540,000

Credit Balances 2020 2019

Allowance for Doubtful Accounts $ 10,000 $ 8,000

Accumulated Depreciation - Equipment 21,000 14,000

Accumulated Depreciation - Buildings 37,000 28,000

Accounts Payable 72,500 60,000

Income Tax Payable 12,000 10,000

Long-Term Notes Payable 62,000 70,000

Accrued Pension Liability 7,500 10,000

Common Shares 300,000 250,000

Retained Earnings 92,000 90,000 Total $ 614,000 $ 540,000

Jensen Limited Statement of Financial Position Accounts

December 31, 2020 and 2019

Sales Revenue $ 960,000

less Cost of Goods Sold 600,000

Gross Profit 360,000

Less Operating Expenses (includes depreciation and bad debt expense) 250,000

Income from Operations 110,000

Other Revenues and Expenses Interest Expense (10,000)

Gain on FV-NI Investments 24000

Loss on Disposal of Equipment (3,000) 11,000

Income before Tax 121,000

Income Tax 45,000

Net Income 76,000

Jensen Limited Statement of Financial Position Accounts December 31, 2020 and 2019

Additional information:

1. Equipment that cost $10,000 and was 40% depreciated was sold in 2020.

2. Cash dividends were declared and paid during the year.

3. Common shares were issued in exchange for land. No other land was acquired or disposed of during the year. Common shares were also issued for equipment purchases in the amount of $20,000.

4. FV-NI investments that had cost $35,000 and had a fair value of $37,000 at December 31, 2019, were sold during the year for proceeds of $50,000, resulting in a realized gain of $13,000. Jensen also had unrealized gains during the year of $11,000. Additional purchases of FV-NI investments were made during 2020.

5. Cost of goods sold includes $115,000 of direct labour and benefits and $11,700 of pension costs. Operating expenses include $76,000 of salaries and wages and $8,000 of pension expense.

6. Jensen has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities on the statement of cash flows.

7. No accounts receivables were written off during the year.

Required: a. Prepare a statement of cash flows using the indirect method, including all required disclosures.

b. Prepare the "Cash provided by (or used in) operating activities" section under the direct method.