Flint Inc., a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows and follows the policy of classifying interest paid as operating cash flows and dividends paid as financing cash flows. The comparative statement of financial position and income statement for Flint as of May 31, 2020, are as follows: FLINT INC. Statement of Financial Position As at May 31 Current assets Cash 2020 2019 $34,060 $20,350 Accounts receivable 81.640 56.440 Inventory 188,950 199,360 8,280 7270 312,930 283.420 Prepaid expenses Total current assets Plant assets Less: Accumulated depreciation 599,500 505,500 154,350 122.350 445,150 383,150 Net plant assets $758,080 $666,570 Total assets Question 1 of 3 Current liabilities $122,840 $115,840 61,160 72,270 Accounts payable Salaries and wages payable Interest payable Total current liabilities Mortgage payable 25,160 22,960 209,160 211,070 78,810 104,000 Total liabilities 287,970 315,070 Shareholders' equity Common shares 335,940 280,000 Retained earnings 134,170 71,500 Total shareholders' equity 470,110 351,500 Total liabilities and shareholders' equity $758,080 $666,570 FLINT INC. Income Statement For the Year Ended May 31, 2020 Sales $ 1,330,060 Cost of goods sold 811.000 Gross margin 519,060 Expenses Salaries and wages expense Interest expense 190,000 65,700 Other operating expenses 24,300 Depreciation expense 32,000 Total operating expenses 312,000 Operating income 207,060 Income tax expense 65,600 Net earnings 141,460 Net earnings $ 141.460 The following is additional information about transactions during the year ended May 31, 2020, for Flint Inc, which follows IFRS. 1. 2. 3. Plant assets costing $94,000 were purchased by paying $54,000 in cash and issuing 5,000 common shares. The "other expenses relate to prepaid items. In order to supplement its cash, Flint issued 4,000 additional common shares. There were no penalties assessed for the repayment of the mortgage Cash dividends of $78,790 were declared and paid at the end of the fiscal year. 4. 5. Prepare a statement of cash flows for Flint Inc. for the year ended May 31, 2020, using the direct method. (Show amounts that decrec cash flow with either a - signes. - 15,000 or in parenthesis eg. (15,000.) Flint Inc. Statement of Cash Flows (Direct Method) For the Year Ended May 31, 2020 Cash Flows from Operating Activities U Prepare a statement of cash flows for Flint Inc. for the year ended May 31, 2020, using the direct method. (Show amounts that decrease cash flow with either a - signes. 15,000 or in parenthesis es. (15,000) Flint Inc. Statement of Cash Flows (Direct Method) Fos the Year Ended May 31, 2020 Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers for Goods for Resale Cash Paid to Suppliers for Other Operating Expenses Cash Paid for Interest TOURO Cash Paid to and on behalf of Employees Cash Paid for Income Taxes Cash Paid for Income Taxes Net Cash Provided by Operating Activities II Cash Flowstrom Investing Activities Purchase of Plant Amets Cash Flows from Financing Activities Dividends Pald Proceeds from Issuance of Common Shares III Principal Payment of Mortgage Net Cash Used by Financing Activities Net Incest in Cach 0.3471 Cash Flows from Financing Activities Dividends Paid Proceeds from Issuance of Common Shares Principal Payment of Mortgage TOT III Net Cash Used by Financing Activities Net Increase in Cash Cash. June 1. 2019 Cash. May 31, 2020 Schedule of non-cash investing and financing activities Issuance of Common Shares for Plant Assets $ Touthenland Martin