Ivanhoe Limited, which follows IFRS, chooses to classify interest and dividends received as well as interest paid as operating activities and dividends paid as financing activities. Ivanhoe had the following information available at the end of 2020: 2019 IVANHOE LIMITED Comparative Statement of Financial Position December 31, 2020 and 2019 2020 Cash $26,000 Accounts receivable 13,800 FV-NI investments 20,900 Inventory 42,100 Prepaid rent 6,900 Prepaid insurance 2,170 Supplies 3,200 Land 121,700 Buildings 350,000 Accumulated depreciation - Buildings (105,000) Equipment 534,000 Accumulated depreciation - Equipment (130,000 Patents 90,000 Accumulated amortization-Patents (45,000) Total assets $930,770 $0 17,040 28,900 39.100 10,000 1,500 3,080 168,400 350,000 (87,500) 417,000 (112,000) 90,000 (40,000) $885,520 Temporary bank overdraft Accounts payable $0 22,000 $16,100 20,000 Income tav pavabla 500 hann 6,000 500 10,000 70,000 Income tax payable Salaries and wages payable Short-term notes payable (trade) Long-term notes payable (non-trade) Deferred tax liability Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity 5,000 4,100 10,000 60,000 30,000 375,000 270,670 154,000 $930,770 25,000 375,000 248,320 114,600 $885,520 $1,210,000 (801,000) 409,000 ASHLEY LIMITED Income Statement Year Ended December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses $39,600 Administrative expenses 124,800 Salaries and wages expense 91,600 Depreciation and amortization expense 40,500 Total operating expenses Income from operations Other revenues/expenses Gain on disposal of land 8,800 (296,500) 112,500 11 Con 6,500 (41,500) Investment income (Note 1) Interest expense Income before taxes Income tax expense Net income (26,200) 86,300 (28,800) $57,500 Note 1: Investment income generated by (FV-NI) investments includes dividend income of $2,400 and a gain on disposal of investments of $4,100. (a) Prepare a statement of cash flows for Ivanhoe Limited using the direct method, accompanied by a schedule that provides cash flow from operations using the indirect approach. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Round answers to O decimal places, e.g. 5,275.) Ivanhoe Limited Statement of Cash Flows $ Ivall UC LILILCU Statement of Cash Flows $ $ $ Cash flows from operating activities section under the indirect method $ Adjustments to reconcile net income to net cash provided by operating activities: $ net cash provided by operating activities: $ $ $ 2020 2019 $ $
