Question 5 (12 marks) Westward Ltd.s (Westwards) comparative statements of financial position at December 31, 2020 and 2019, and its statement of comprehensive income for the year ended December 31, 2020, are as follows: Westward Ltd. Statement of financial position As at December 31 2019 $ 36,000 39,000 87,000 18,000 80,000 475,000 (101,000) $ 634,000 $ 37,000 3,000 8,000 15,000 $ 63,000 $ 85,000 400,000 86,000 $571,000 $634,000 Assets Cash Accounts receivable Inventory Investments Land Building and equipment Accumulated depreciation Total assets Liabilities and shareholders equity Liabilities Accounts payable Salaries payable Income taxes payable Bonds payable Total liabilities Shareholders equity Preferred shares Common shares Retained earnings Total shareholders equity 2020 $ 68,000 92,000 119,000 37,000 80,000 463,000 (123,000) $ 736,000 $ 17,000 5,000 12,000 25,000 $ 59,000 $ 85,000 448,000 144,000 $677,000 $736,000 6) Total liabilities and shareholders equity Westward Ltd. Statement of comprehensive income For the year ended December 31, 2020 Sales $900,000 Cost of sales (600,000) Gross margin 300,000 Other income gain in investments 6,000 306,000 Operating expenses (148,000) Interest expense (11,000) Depreciation expense (41,000) Loss on sale of equipment (4,000) Net income before taxes 102,000 Income taxes (30,000) Net income $ 72,000 Additional information for 2020 is as follows: During 2020, Westward sold equipment that had originally cost $32,000 and had an accumulated depreciation of $19,000 at the time of sale. Investments are classified as fair value through profit or loss, and are NOT considered part of cash and cash equivalents. Cash proceeds of $20,000 were received for investments sold during the year. Operating expenses include salaries expense of $58,000. All dividends are paid on the same day they are declared. Westward reports under IFRS. Required: Prepare Westwards statement of cash flows for the year ended December 31, 2020, using the direct method. (12 marks)