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Section of Statement of Cash Flows

Financing Section

Investing Section

Operating Section

Non-Cash

Effect

Increase

Decrease

Need For Questions 3 and 4

Splish Corporation uses IFRS to prepare its 2021 statement of cash flows. It has elected to prepare the statement using the indirect method and to classify dividends paid as financing activities and interest paid as operating activities on the statement of cash flows. A list of the activities that occurred during the year is as follows: For each of the above activities, indicate the following: i) which section of the statement of cash flows is affected if any (operating, investing and financing); ii) the amount and the effect on the statement of cash flows (increase, decrease or no effect on cash flows) Section of Statement of Cash Flows Effect 1. Decrease in accounts receivable of $2,100 Operating Section Increase 2100 2. Purchase of a FV-Nl investment for $6,000 Operating Section Decrease 6000 3. Sale of a FV-NI investment for $9,400 Operating Section Increase 9400 Loss on sale of $1,100 1100 4. Goodwill impairment loss of $3,300 3300 5. Decrease in dividends payable of $1,900 Financing Section Decrease 1900 6. Purchase of land for $161,000 Investing Section Decrease 161000 7. Issue common shares for $66,000 Financing Section Increase 66000 8. Conversion of bond payable into common shares Non-Cash No Effect on Cash Flows