Use the following information to answer Questions 1 and 2. The following are the financial statements of Tinsel Town Toys Corp. for the year ended December 31, 20X7. Assume that the company follows IFRS. It is recommended that you prepare the complete statement of cash flows before answering the questions. Round all calculations to the nearest dollar. Tinsel Town Toys Corp. Statement of comprehensive income For the year ended December 31, 20X7 (unaudited) Revenue $5,006,385 Cost of goods sold 3,685,398 Gross margin 1,320,987 Operating expenses Advertising $ 1,500 Depreciation expense 59,000 Amortization expense 2,000 Audit and legal fees 8,565 Bad debt 1,390 Interest expense long-term debt 1,500 Insurance expense property, building, and casualty 3,740 Office expenses 1,500 Property taxes 8,500 Training and development 1,600 Telephone 7,500 Wages, salaries, and benefits 212,695 309,490 1,011,497

Other income, expenses, gains, and losses Dividend income 1,500 Interest income bonds 1,850 Loss on sale of property, plant and equipment (PPE) (8,400) (5,050) Net income before income taxes 1,006,447 Income tax expense 296,800 Net income $ 709,647 Tinsel Town Toys Corp. Statement of changes in equity For the year ended December 31, 20X7 (unaudited) Preferred shares Common shares Retained earnings Total As at January 1, 20X7 $30,000 $114,000 $ 298,700 $ 442,700 Net income 0 0 709,647 709,647 As at December 31, 20X7 $30,000 $114,000 $1,008,347 $1,152,347 Tinsel Town Toys Corp. Statements of financial position As at December 31 (unaudited) Assets 20X7 20X6 Current assets Cash $ 100,397 $ 23,200 Accounts receivable 31,400 28,000 Allowance for doubtful accounts (1,200) (950) Dividends receivable 600 500 Interest receivable 5,100 6,300 Prepaid expenses 7,200 15,100 Inventory 60,500 76,000 203,997 148,150 Non-current assets Note receivable 15,000 0 Investment in FIRS shares, at fair value through profit and loss (FVPL) 10,000 10,000 Investment in Blue Room bonds, at amortized cost 455,000 0 PPE 775,050 612,750 Accumulated depreciation (153,100) (102,600) Patent net 10,000 12,000 Total assets $1,315,947 $680,300

Liabilities and equity Current liabilities Accounts payable $ 38,600 $ 26,500 Payroll taxes payable 1,500 1,400 Income taxes payable 61,800 42,700 Short-term note payable 6,700 0 Current portion of long-term debt 15,000 15,000 123,600 85,600 Non-current liabilities Long-term debt 40,000 152,000 163,600 237,600 Equity Preferred shares (500 shares outstanding) 30,000 30,000 Common shares (12,000 shares @ $45 per share) 114,000 114,000 Retained earnings 1,008,347 298,700 1,152,347 442,700 Total liabilities and equity $1,315,947 $680,300 Additional information: In 20X7, Tinsel Town Toys sold used shelving from its PPE for $5,800. The original cost of the shelving was $22,700, and it had a net book value of $14,200 at the time of disposal. No other disposals were made in PPE during the year. During 20X7, Tinsel Town Toys purchased new shelving at a cost of $185,000. Dividends and interest received and paid are reported by the company in the statement of cash flows in operating activities. 1. For the fiscal year ended December 31, 20X7, what is the amount of net cash used in investing activities? a) ($179,200) b) ($194,200) c) ($649,200) d) ($655,000) 2. For the fiscal year ended December 31, 20X7, what is the amount of net cash used in financing activities? a) ($105,300) b) ($112,000) c) ($560,300) d) ($575,300)

Use the following information to answer Questions 3 to 5. The following are the financial statements of Wood Lake Resort and Sports Inc. for the year ended March 31, 20X7. Assume that the company follows IFRS. It is recommended that you prepare the complete statement of cash flows before answering the questions. Round all calculations to the nearest dollar. Wood Lake Resort and Sports Inc. Statement of comprehensive income For the year ended March 31, 20X7 (unaudited) Revenue $3,658,217 Cost of goods sold 1,930,057 Gross margin 1,728,160 Operating expenses Audit and legal fees $ 10,000 Depreciation expense 311,500 Automobile maintenance 3,400 Cleaning and maintenance 45,600 Interest expense long-term debt 1,500 Insurance expense property, building, and casualty 56,000 Janitorial and groundskeeping services 15,000 Office expenses 2,700 Promotion 18,600 Property taxes 22,500 Telephone, internet, and communications 11,000 Utilities 10,000 Wages, salaries, and benefits 705,630 1,213,430 514,730 Other income, expenses, gains, and losses Dividend income 3,300 Interest income bonds 17,500 Gain on sale of investment in Laughing Hen bonds 10,000 Loss on sale of PPE (1,200) 29,600 Net income before income taxes 544,330 Income tax expense 132,600 Net income 411,730 OCI Revaluation gains (special-use licence) 50,000 Comprehensive income $ 461,730 Wood Lake Resort and Sports Inc. Statement of changes in equity For the year ended March 31, 20X7 (unaudited) Common shares AOCI Retained earnings Total As at April 1, 20X6 $318,000 $ 0 $152,754 $470,754 Shares issued 95,000 0 0 95,000 Dividends 0 0 (45,500) (45,500) Net income 0 0 411,730 411,730 OCI 0 50,000 0 50,000 As at March 31, 20X7 $413,000 $50,000 $518,984 $981,984 Wood Lake Resort and Sports Inc. Statements of financial position As at March 31 (unaudited) Assets 20X7 20X6 Current assets Cash $ 158,984 $ 135,354 Accounts receivable 5,100 7,500 Dividends receivable 0 1,200 Interest receivable 5,100 6,300 Prepaid expenses 7,200 15,100 Inventory 8,500 5,700 184,884 171,154 Non-current assets Investment in ABC shares (at FVPL) 18,000 18,000 Investment in Laughing Hen bonds (at amortized cost) 225,000 450,000 PPE 3,433,000 2,985,300 Accumulated depreciation (1,585,200) (1,283,500) Special-use licence net 635,000 585,000 Total assets $ 2,910,684 $ 2,925,954

Liabilities and equity Current liabilities Accounts payable $ 9,600 $ 13,500 Payroll taxes payable 3,500 4,200 Income taxes payable 37,600 30,000 Short-term note payable 0 7,500 Dividends payable 23,000 0 Current portion of long-term debt 122,000 100,000 195,700 155,200 Non-current liabilities Long-term debt 1,733,000 2,300,000 1,928,700 2,455,200 Equity Common shares 413,000 318,000 AOCI (loss) 50,000 0 Retained earnings 518,984 152,754 981,984 470,754 Total liabilities and equity $2,910,684 $2,925,954 Additional information: In fiscal 20X7, Wood Lake sold several used canoes, kayaks and rafts from its PPE for $1,300. The original total cost of this equipment was $12,300, and it had a combined net book value of $2,500 at the time of disposal. On June 1, 20X6, Wood Lake purchased an additional houseboat for $95,000 and paid cash. The Laughing Hen bonds were purchased at face value. Wood Lake borrowed $70,000 during the year. The loan is repayable over three years. Interest on the loan is payable monthly. Principal payments are due on June 30 and December 31. The first payment was due on December 31, 20X6. At a time when Wood Lake shares were trading on the stock market for $1,000 per share, Wood Lake issued 100 shares in exchange for a second houseboat that was valued at $95,000. Wood Lake has a special-use licence that permits it to operate its for-profit business on government land, including the surrounding parks and lakes. On October 31, 20X6, the special-use licence was tested for impairment. The permit was found to have a fair value of $635,000. Its book value was $585,000. The revaluation gain was recorded in OCI. Recreation companies similar to Wood Lake enter and leave the recreation business frequently, and the market for these special-use licences is active because there is a limited number available. Dividends and interest received are reported as investing activities in the statement of cash flow.

Dividends and interest paid are reported as financing activities in the statement of cash flows. Wood Lake paid a $1 per share dividend to its shareholders on September 30, 20X6. A second dividend of $1 per share was declared by the company on March 31, 20X7, and paid on April 21, 20X7. Wood Lake uses the direct method to prepare the operating activities section of the statement of cash flows. 3. What is the total amount of cash received from customers during the 20X7 fiscal year? a) $3,645,617 b) $3,655,817 c) $3,658,217 d) $3,660,617 4. For Wood Lakes fiscal year ended March 31, 20X7, what is the amount of net cash provided by (used in) investing activities? a) ($200,500) b) ($128,700) c) ($105,500) d) $113,500 5. For Wood Lakes fiscal year ended March 31, 20X7, what is the amount of net cash used in financing activities? a) ($552,500) b) ($576,500) c) ($599,500) d) ($941,500)