Selected accounts from the SFP of Iraj Ltd at 31 December 20X5 and 20X4 are presented below, in thousands Iraj reported earnings of $920 in 20X5, and depreciation expense was $165 Bonds of $150 par value were issued during the period for $135 and a discount of $15 was originally recorded As at 31 December 20X5 20X4 Accounts receivable $ 372 $ 485 Inventory 334 280 Accounts payable 262 305 Interest payable 32 12 Deferred income tax liability 187 155 Bonds payable 800 650 Discount on bonds payable (34 ) (33 ) Required 1 Prepare the operating activities section of the SCF, using the indirect approach and the two step presentation method (List any deduction in cash and cash outflows as negative amounts Assume that dividends paid are financing activities, and assume that interest paid and received, and dividends received, are operating transactions Enter your answers in thousands ) 2 Calculate cash paid for interest and income tax, assuming that interest expense is $155 and income tax expense is $190 (Enter your answers in thousands )

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Selected accounts from the SFP of Iraj Ltd. at 31 December 20X5 and 20X4 are presented below, in thousands. Iraj reported earnings of $920 in

Selected accounts from the SFP of Iraj Ltd. at 31 December 20X5 and 20X4 are presented below, in thousands. Iraj reported earnings of $920 in 20X5, and depreciation expense was $165. Bonds of $150 par value were issued during the period for $135 and a discount of $15 was originally recorded.

As at 31 December	20X5			20X4
Accounts receivable	$	372		$	485
Inventory		334			280
Accounts payable		262			305
Interest payable		32			12
Deferred income tax liability		187			155
Bonds payable		800			650
Discount on bonds payable		(34	)		(33	)

Required: 1. Prepare the operating activities section of the SCF, using the indirect approach and the two-step presentation method. (List any deduction in cash and cash outflows as negative amounts. Assume that dividends paid are financing activities, and assume that interest paid and received, and dividends received, are operating transactions. Enter your answers in thousands.)

2. Calculate cash paid for interest and income tax, assuming that interest expense is $155 and income tax expense is $190. (Enter your answers in thousands.)