Exercise 22-16 (b) (direct method) Information from the statement of financial position and statement of income is given below for Flounder Road Inc., a company following IFRS, for the year ended December 31. Flounder Road has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Comparative Statement of Financial Position, at December 31 2020 2019 Cash $86,000 $47,550 Accounts receivable 91,600 37,700 Inventory 131,000 111,650 Investments in land 91,900 115,000 Property, plant, and equipment 292,000 210,000 Accumulated depreciation (48,600) (40,000) $643,900 $481,900 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings $54,300 11,800 146,000 250,000 181,800 $643,900 $48,980 19,130 79,000 208,000 126,790 $481,900 Statement of Income, year ended December 31, 2020 Revenues Sales revenue $291,200 Gain on disposal of investment in land 5,000 Gain on disposal of equipment 8,810 305,010 Expenses Cost of goods sold $98,260 Depreciation expense 58,600 Operating expenses 14,700 Income tax expense 38,100 Interest expense 2,770 212,430 Net income $92,580 Additional information: 1. Investments in land were sold at a gain during 2020. 2. Equipment costing $56,500 was sold for $15,310, resulting in a gain. 3. Common shares were issued in exchange for some equipment during the year. No other shares were issued. 4. The remaining purchases of equipment were paid for in cash. Prepare the operating activities section of the statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) FLOUNDER ROAD INC. Statement of Cash Flows Direct Method $