Misky Inc. Excerpt from the statement of comprehensive income For the year ended December 31, 20X2 (000s)
	Note
Operating income	1	$ 6,347
Investment income	2	534
Net income before income taxes		6,881
Income taxes		(1,388)
Net income		$ 5,493

Misky Inc. Statements of financial position As at December 31 (000s)
		20X2	20X1
Current assets
Cash and cash equivalents		$ 7,742	$10,028
Receivables		7,010	6,470
Inventories		25,919	23,073
Investments	4	281	222
		40,952	39,793
Non-current assets
Property, plant and equipment (PPE)	3	21,395	19,458
		$62,347	$59,251
Liabilities
Current liabilities	5	$ 4,604	$ 5,359
Non-current liabilities	6	2,613	2,998
		7,217	8,357
Shareholders equity
Share capital	7	29,634	29,214
Retained earnings		25,458	21,680
Accumulated other comprehensive income		38
Total shareholders equity		55,130	50,894
		$62,347	$59,251

Notes (in 000s):

1. Operating income includes:
Depreciation	1,091
Gain on sale of PPE	9
2. Investment income is shown net of:
Interest income	275
Dividend income	409
Interest expense	(150)

3. Property, plant and equipment:

The only disposal of PPE during the 20X2 fiscal year was an asset with a net book value of

$22 at the date of sale. Some non-current assets were acquired under a finance lease at the end of the current year (see Note 6).

4. Investments:

The investments are not cash equivalents. Some of the investments are classified as fair value through other comprehensive income (FVOCI) and were revalued upward by $38 during 20X2. The remaining investments are measured at amortized cost.

5. Current liabilities (000s):	20X2	20X1
Accounts payable	$2,872	$3,167
Income taxes payable	1,358	1,685
Accrued liabilities	374	507
	$4,604	$5,359
Accrued liabilities include interest payable of $32,000 (20X1: $24,000).
6. Non-current liabilities (000s):	20X2	20X1
Secured loan	$1,200	$2,398
Bond payable	180	600
Finance lease payable	1,233
	$2,613	$2,998

7. Misky paid dividends of $1,715 during the 20X2 fiscal year.

8. Misky reports interest expense and income as operating activities, while all dividends paid are reported as financing activities.

Required:

a) Prepare the statement of cash flows for the year to December 31, 20X2. Misky uses the indirect method when calculating cash from operations. (10 marks)

b) Show the Direct method for the operations section (5 marks)