SFP accounts of Sunland Inc., which follows IFRS, follow: SUNLAND INC. Comparative Statement of Financial Position Accounts December 31, 2020 and 2019 December 31 Debit accounts 2020 2019 Cash $45,450 $33.900 FV-NI investments 23,340 40,650 Accounts receivable 67,070 59,650 Merchandise inventory 29,400 23,500 Machinery 30,390 19,150 Buildings 67,240 56,050 Land 7,500 7,500 $270,390 $240,400 Credit accounts Allowance for doubtful accounts $1,280 $530 Accumulated depreciation-machinery 5,675 2,320 Accumulated depreciation-buildings 13,840 9,350 Accounts payable 30,395 25,150 Accrued liabilities 2,400 1,140 Income taxes payable 880 1,380 26,000 31,000 Long-term note payable-non-trade Common shares 150,000 125.000 Retained earnings 39,920 44,530 $270,390 $240,400 Additional information: Sunland Inc. has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. 1. 2. Cash dividends declared during the year were $18,330. A 20% stock dividend was declared during the year and $25,000 of retained earnings was capitalized. FV-NI investments that cost $20,400 and had a fair value at December 31, 2019, of $25,000 were sold during the year for $22,910. 3. 4. Machinery that cost $3,800 and had $750 of depreciation accumulated was sold for $2,210. Sunland's 2020 statement of income is as follows: Sales revenue $640,000 Cost of goods sold 378,000 Gross margin 262,000 Operating expenses (includes $8,595 depreciation and $5,400 bad debts) 180,350 Income from operations 81,650 Loss on disposal of FV-Nl investments $12,090) (3,000) Interest expense Loss on disposal of machinery (840) (5,930) Income before tax 75,720 Income tax expense 37,000 Net income $38,720 Calculate net cash flow from operating activities using the direct method. (Show amounts that decrease cash flow with either a - signe.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND INC. Statement of Cash Flow December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers $ Add : Net cash received on FV-Nl investment transactions Less Cash Paid for Interest Income Taxes Paid