Question 10.4 (Total: 35 marks) 5XU Corp., a major retailer of athletic equipment and accessories, operates several stores and is a publicly traded company. The company is currently preparing its statement of cash flows. The comparative statement of financial position and income statement for 5XU Corp.as at May 31, 2020 are as follows: 5XU Corp. Statement of Financial Position As at May 31 2020 2019 Current assets Cash $ 33,250 $ 20,000 Accounts receivable 74,800 55,600 Inventory 188,700 199,000 Prepaid expenses 8,800 7,000 Total current assets 305,550 281,600 Plant assets 596,500 501,500 Less: Accumulated depreciation 148,000 122,000 Net plant assets 448,500 379,500 Total assets $754,050 $661,100 Current liabilities Accounts payable $123,000 $115,000 Salaries and wages payable 61,000 72,000 Interest payable 24,700 22,600 Total current liabilities 208,700 209,600 Mortgage payable 75,000 100,000 Total liabilities 283,700 309,600 Shareholders' equity Common shares 335,750 280,000 Retained earnings 134,600 71,500 Total shareholders' equity 470,350 351,500 Total liabilities and shareholders' equity $754,050 $661,100 $1,345,800 814,000 531,800 5XU Corp. Income Statement For the Year Ended May 31, 2020 Sales Cost of goods sold Gross margin Expenses Salaries and wages expense Interest expense Other operating expenses Depreciation expense Total operating expenses Operating income Income tax expense Net earnings 207,800 66,700 24,800 26,000 325,300 206,500 65,400 $141,100 a. The following is additional information about transactions during the year ended May 31, 2020 for 5XU Corp., which follows IFRS: Plant assets costing $95,000 were purchased by paying $44,000 in cash and issuing 5,000 common shares. b. The "other expenses" relate to prepaid items. In order to supplement its cash, 5XU Corp. issued 4,000 additional common shares. d. There were no penalties assessed for the repayment of mortgage. Cash dividends of $78,000 were declared and paid at the end of the fiscal year. C. e. Required Prepare a statement of cash flows for 5XU Corp. for the year ended May 31, 2020, using the direct method. Support the statement with appropriate calculations, and provide all required disclosures