The following is the Statement of Financial Position and the Statement of Income for Kaminsky Ltd. Kaminsky Ltd Statement of Financial Position As at December 31, 2020 2020 2019 Assets Cash Accounts receivable Allowance for doubtful accounts FVTOCI investments FVTPL investments Inventory Prepaid insurance S 24,700 $ 41,750 188,500 183,400 (15,000) (16,500) 260,000 200,000 60,000 80,000 184,000 161,000 18,000 16,000 $ 720,200 $ 665,650 400,000 150,000 1,650,000 1,480,000 -650,000 -580,000 $ 1,400,000 $1,050,000 $ 2,120,200 $ 1,715,650 Land Buildings and equipment Accumulated depreciation Liabilities and Shareholders' Equity Short-term bank loan Accounts payable Unearned revenues Tax payable Dividends payable 22,000 5000 103,600 119,300 16,750 20,400 19,900 16,600 25,000 30,000 $ 187,250 $ 186,300 $ 800,000 $ 800,000 1,124,950 747,350 8,000 -18,000 1,932,950 1,529,350 $ 2,120,200 $ 1,715,650 Common shares Retained earnings AOCI- FUTOCI investments Kaminsky Ltd Statement of Income for the Year Ended December 31, 2020 Revenue Cost of Goods Sold Gross margin Operating expenses Bad debt expense Interest expense Tax expense Gain on sale of equipment FV adjustment on FVTPL investments Gain on sale of FVTPL investments Net Income OCI-FVTOCI investments Comprehensive income $ 3,350,000 1,340,000 2,010,000 717,000 4,100 44,500 311,100 17,000 4,900 7,500 $ 962,700 15,400 $ 978,100 Additional information 1. Depreciation expense of $182,000 is included in operating expenses. 2. The company acquired equipment during the year. 3. 4. The company sold equipment for proceeds of $65,000. The asset was 70% depreciated at the time of sale. The short-term bank loans are considered cash and cash equivalents. Fair value though profit and loss investments with a carrying value of $70,000 were sold in 2020. FVTOCI investments with an original cost of $48,600 were sold in 2020 for proceeds of $38,000. The investments had a carrying value of $42,000 at the beginning of 2020. 5. 6. Required a. Calculate the cash flow from operations section of the Statement of Cash Flow using the indirect method. (6 marks) b. Calculate cash flow from operations section of the Statement of Cash Flow using the direct method. (8 marks) c. Calculate cash flow from investing activities. (14 marks)