Knutsford Corporation follows IFRS. Financial statements and notes for Knutsford Corporation are below:

Knutsford Corporation

Statement of Financial Position

December $31,$ Year $8$

Year $8$ Year $7$

Cash $ $25,400$ $ $0$

Accounts receivable $13,50016,950$

FVNI investments $20,00030,000$

Inventory $42,00035,000$

Prepaid rent $7,00012,000$

Prepaid insurance $2,100900$

Supplies $1,000750$

Land $125,000175,000$

Buildings $350,000350,000$

Accumulated depreciation, buildings $(105,000)(87,500)$

Equipment $525,000400,000$

Accumulated depreciation, equipment $(130,000)(112,000)$

Patents $90,00090,000$

Accumulated amortization, patents $(45,000)(40,000)$

$ $921,000$ $ $871,100$

Short$-$term bank overdraft $ $0$ $ $12,000$

Accounts payable $22,00020,000$

Income tax payable $5,0006,000$

Salaries and wages payable $5,0001,000$

Short term note payable $10,00010,000$

Notes payable $($long term$)60,00070,000$

Deferred tax liability $30,00025,000$

Bonds payable $375,000375,000$

Common shares $260,000237,500$

Retained earnings $154,000114,600$

Total liabilities and shareholder$$s equity $ $921,000$ $ $871,100$

Knutsford Corporation

Income Statement

Year Ended December $31,$ Year $8$

Revenues

Sales revenue $ $1,160,000$

Cost of goods sold $748,000$

Gross profit $412,000$

Operating expenses

Selling expenses $ $39,200$

Administrative expenses $124,700$

Salaries expense $92,000$

Depreciation and amortization expense $40,500296,400$

Income from operations $115,600$

Other revenues and expenses

Gain on sale of land $8,000$

Investment income $**6,400$

Interest expense $41,75027,350$

Income before income tax $88,250$

Income tax expense $29,400$

Net income $ $58,850$

$**$ Investment income from F VNI investments represents dividends of $$2,400$ and a gain on sale of $$4,000.$

Required

Complete the following with the details provided.

A$.$ Prepare a statement of cash flows for Year $8$ using the direct method.

B$.$ Prepare the operating activities section of the statement of cash flows for Year $8$ using the indirect method.