The comparative statement of financial position of Blue Spruce Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow: BLUE SPRUCE INC. Statement of Financial Position June 30, 2020 June 30 Assets 2020 2019 Cash $ 20,000 $ 44,000 Accounts receivable 86,200 75,600 Inventory 104,000 101,400 Prepaid expenses 2,700 5,000 FV-OCI investments 47,800 44,400 Equipment 179,000 159,000 Accumulated depreciation equipment (36,000) (23,400) Total $403,700 $ 406,000 Liabilities and Shareholders' Equity Accounts payable $ 102,000 $ 95,000 Income tax payable 1,800 3,000 Dividends payable 6,000 Long-term notes payable 85,100 118,500 Common shares 31,400 22,200 Retained earnings 165,000 158,300 Accumulated other comprehensive income 12,400 9,000 Total $403,700 $406,000 BLUE SPRUCE INC. Statement of Comprehensive Income For the Year Ended June 30, 2020 Net sales $335,000 Cost of goods sold 177,000 Gross profit 158,000 Operating expenses 121,000 Income from operations 37,000 Interest expense 8,100 Income before income tax 28,900 Income tax 5,000 Net income 23,900 Other comprehensive income Unrealized gain or loss-OCI 3,400 Comprehensive income $ 27,300 Additional information: 1. Blue Spruce follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 2. Operating expenses include $12,600 in depreciation expense. 3. There were no disposals of equipment during the year. 4. Common shares were issued for cash. 5. During the year, Blue Spruce acquired $8,000 of equipment in exchange for long-term notes payable. Prepare the statement of cash flows for Blue Spruce for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE SPRUCE INC. Statement of Cash Flows Adjustments to reconcile net income to net cash provided by operating activities: During the year, equipment with a cost of $ was purchased in exchange for a note payable. Prepare the operating activities section of the statement of cash flows for Blue Spruce using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE SPRUCE INC. Statement of Cash Flows