1. From the following information prepare statement of cash flows using direct method following common approach w.r.t US GAAP/IFRS.

Income Statement
Clark Corporation
12/31/2003
Net Sales	$810,000
Cost of Goods Sold	(460,000)
Gross Margin		350,000
Misc Operating Expenses	175,500
Depreciation Expense Machinery	20,000

Depreciation Expense Building	10,000
		(205,500)
Income before income tax		144,500
Income tax expense		(69,500)
Net income		75,000

Comparative Balance Sheet
Clark Corporation
	12/31/03	12/31/02		12/31/03	12/31/02
Assets	$	$	Liabilities	$	$
Land	60000	50000	Ordinary Share $20 Par	400000	350000
Building	580000	475000	Share Premium	55000	45000
Accumulated Depreciation Building	-225000	-215000	Retained Earnings	154100	119100
Machinery	330000	310000	Mortgage Liability due 10 years	100000	0
Accumulated Depreciation Machinery	-131000	-185000	Creditors	32500	37000
Inventory	48000	51000	Accrued Wages	4500	7500
Prepaid Expense	4100	3700	Tax Payable	7000	5000
Debtors	41000	45000
Cash	46000	28900
Total Assets	753100	563600	Total liabilities and equity	753100	563600

Additional Information:

1. 1. Dividends of $40000 were declared during the year.
   2. Machinery with an original cost of $80000 and Accumulated Depreciation $74000 was sold during the year for $6000. New machinery was also purchased for cash $100000.
   3. Land and Building were acquired during the year at a cost of $115000. In addition to a down payment of $15000, a ten year 6% mortgage note of $100000 was issued to the seller
   4. Ordinary share having par of $50000 were issued for $60000 cash.
2. Discuss the similarities in IFRS and GAAP with respect to statement of cash flows.