Question 11 The comparative statement of financial position of Whispering Winds Inc. as at June 30, 2020 WHISPERING WINDS INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 43,000 Accounts receivable 86,100 70,600 Inventory 103,200 101,500 Prepaid expenses 2,500 5,400 FV-OCI investments 47,400 44,900 Equipment 173,000 159,000 Accumulated depreciation equipment (34,500) (23,500) Total $397,700 $400,900 Liabilities and Shareholders' Equity Accounts payable $106,000 $ 99,000 Income tax payable 2,200 3,400 Dividends payable 5,200 0 Long-term notes payable 89,200 118,500 Common shares 31,300 22,800 Retained earnings 151,900 147,800 Accumulated other comprehensive income 11,900 9,400 Total $397,700 $400,900 WHISPERING WINDS INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $335,000 Cost of goods sold 180,000 Gross profit 155,000 Operating expenses 121,000 Income from operations 34,000 Interest expense 8,100 Income before income tax 25,900 Income tax 5,400 Net income 20,500 Other comprehensive income Unrealized gain or loss-OCI 2,500 Comprehensive income $ 23,000 Additional information: 1. Whispering Winds follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $11,000 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Whispering Winds acquired $7,300 of equipment in exchange for long-term notes payable. Prepare the operating activities section of the statement of cash flows for Whispering Winds using the direct method. parenthesis e.g. (15,000).) WHISPERING WINDS INC. Statement of Cash Flows For the Year Ended June 30, 2020 Cash Flows from Operating Activities Cash Received from Customers $ 358,000 Cash Paid for Operating Expenses -107,100 Cash Paid to Suppliers -174,700 Taxes Paid -6,600 Interest Paid -8,100 Net Cash Provided by Operating Activities