Oswald Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must provide a statement of cash flows. Their financial statements for 2020 and 2019 are provided below:

Statements of Financial Position

Dec 31/20 Dec 31/19

Cash $ 51,000 $ 24,000

Accounts receivable 45,000 27,000

Merchandise inventory 48,000 60,000

Property, plant and equipment $ 76,000 $ 120,000

Less accumulated depreciation (40,000) 36,000 (38,000) 82,000

Total Assets $ 180,000 $ 193,000

Accounts payable $ 22,000 $ 12,000

Income taxes payable 44,000 49,000

Bonds payable 45,000 75,000

Common shares 27,000 27,000

Retained earnings 42,000 30,000

Total Liabilities & Shareholders' Equity $ 180,000 $ 193,000

Income Statement

Year ended December 31, 2020

Sales $ 1,050,000

Cost of sales 894,000

Gross profit 156,000

Selling and administrative expenses 99,000

Income from operations 57,000

Interest expense 9,000

Income before taxes 48,000

Income taxes 12,000

Net income $ 36,000

The following additional data were provided for calendar 2020:

1. Dividends declared and paid were $ 24,000.

2. Equipment was sold for $ 30,000. This equipment originally cost $ 44,000 and had a book value of $ 36,000 at the time of sale. The loss on sale was included in "selling and administrative expenses," as was the depreciation expense for the year.

3. Bonds were retired during the year at par.

Instructions

From the information above, provide a statement of cash flows for Oswald Ltd. Using the direct method, accompanied by a schedule that provides cash flow from operations using the indirect approach for calendar 2020.