Condensed statement of financial position and statement of income are given below for Sinclair Corp.

Sinclair Corp

Comparative Statement of Financial Position

at December 31

(in millions of Canadian dollar)

2020 2019

Cash $365 280

Canada Treasury Bills1-month maturity 83 75

FV-NI investments 110 142

Accounts receivable 750 660

Allowance for doubtful accounts -85 -75

Inventory 600 660

Prepaid expenses 25 16

Land 150 100

Plant assets 1,800 1,800

Accumulated depreciation - plant assets -600 -570

Patents 180 201

$3,378 $3,289

Accounts payable (used only for merchandise inventory) $130 $35

Accrued liabilities 80 75

Dividends payable 15 39

Income taxes payable 15 5

Bonds 2,010 1,935

Deferred tax liability 30 45

Preferred shares 150 100

Common shares 268 440

Retained Earnings 680 615

$3,378 $3,289

Sinclair Corp

Statement of Income

Year Ended December 31, 2020

(in millions of Canadian dollar)

Sales $4,600

Cost of goods sold 3,220

Gross margin 1,380

Other operating expenses 910

Income from operations 470

Other expenses and gains

Interest expense $120

Impairment loss on patents $21

FV-NI Investment loss 16 157

Income before tax 313

Income tax expense: Current 98

Deferred ($15) 83

Net income $230

Additional information:

1.Sinclair, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities.

2.FV-NI investments in WLU Corp. were sold on the December 21, and there were no unrealized gains or losses on the remaining FV-NI investments. The FV-NI investments' carrying amount and market value were the same at December 31, 2020.

3.The bonds were issued at a discount. No new bonds were issued. No existing bonds were retired.

4.Accounts receivable of $30 million were written off.

5.Intangible assets were impaired.

6.Sinclair paid $182 million to repurchase and cancel common shares.

Instructions: Prepare the 2020 statement of cash flows in good form using the direct method. Ignore additional note disclosures. Show ALL necessary calculations.