The balance sheet for Sherban Company at year-end is below:

Sherban Company Balance Sheet December 31, 2019

Assets		Liabilities & Shareholders Equity
Cash	$ 44,000	Accounts payable $28,000
Accounts receivable	39,000	Bonds payable 54,000
Buildings and equipment Accumulated depreciation buildings and equipment	178,000 (46,000)	Common shares 69,000
		Retained earnings 64,000
Total Assets $215,000	Total Liabilities and Equity	$215,000

Additional information:

1. The December 31, 2019 balance in accounts receivable represents an increase of $19,000 over last years balance.

1. Net income for 2019 is $60,000.

1. Depreciation expense for 2019 is $15,000.

1. In 2019, the company made cash purchases for land, $27,000 and equipment, $52,000. The opening balances of selected accounts at January 1, 2019 were as follows:

Retained Earnings, Jan 1, 2019	$29,000.
Accounts Payable, Jan 1, 2019	$21,000
Bonds Payable, Jan 1, 2019	$15,000

Assume bonds are non-current liabilities and cash dividends were paid.

Required: Assuming Sherban reports dividends paid as a financing activity:

1. Calculate net cash flow from operating activities. Use a proper three-line title. Show all calculations. (5 marks)

1. Calculate Sherbans current cash debt coverage ratio, cash debt coverage ratio and free cash flow (3 marks)

1. Using your answers in part (b) and comment on Sherbans liquidity and financial flexibility (1 marks).

1. Under IFRS, how else might Sherban account for cash dividends paid in the cash flow statement? (1 mark)