The unclassified statement of financial position accounts for Sorkin Corporation, which is a public company using IFRS, for the year ended December 31, 2016 and its statement of comprehensive income and statement of cash flows for the year ended December 31, 2017 are as follows:

Additional information:
1. The investment income represents Sorkin's reported income from its 35%-owned associate Stoker Inc. Sorkin received a dividend from Stoker during the year.
2. Early in 2017, Sorkin purchased shares for $25 million as an FV-NI investment. There were no purchases or sales of these shares during 2017, nor were there any dividends received from this investment.
3. Equipment that originally cost $70 million became unusable due to a flood. Most major components of the equipment were unharmed and were sold together for $10 million. Sorkin had no insurance coverage for the loss because its insurance policy did not cover floods.
4. Reversing differences in the year between pre-tax accounting income and taxable income resulted in an increase in future taxable amounts, causing the deferred tax liability to increase by $3 million.
5. On December 30, 2017, land costing $46 million was acquired by paying $23 million cash and issuing a $23-million, four-year, 10% note payable to the seller. No repayments of principal were made on the note during 2017.
6. Equipment was acquired through a 15-year financing lease. The present value of minimum lease payments was $82 million when signing the lease on December 31, 2017. Sorkin made the initial lease payment of $2 million on January 1, 2018.
7. Serial bonds with a face value of $60 million were retired at maturity on June 20, 2017. In order to finance this redemption and have additional cash available for operations, Sorkin issued preferred shares for $75 million cash.
8. In February, Sorkin issued a 4% stock dividend (4 million shares). The market price of the common shares was $7.50 per share at the date of the declaration of the dividend.
9. In April 2017, 1 million common shares were repurchased for $9 million. The weighted average original issue price of the repurchased shares was $12 million.
Instructions
(a) Prepare the unclassified statement of financial position accounts for Sorkin Corporation for the year ended December 31, 2017 as a check on the statement of cash flows. Add whichever accounts you consider necessary.
(b) Prepare the operating activities section of the statement of cash flows for Sorkin Corporation using the direct method.
(c) How would the statement of cash flows differ if the terms on the purchase of land had been essentially the same except that the financing for the note payable had been negotiated with a mortgage company instead of the seller of the land?

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SORKIN CORPORATION Statement of Financial Position Accounts December 31, 2016 ($ in millions) Cash Accounts receivable Inventory Prepaid expenses Investment in associate, Stoker Inc. Land Buildings and equipment Accumulated depreciation-buildings and equipment Patents Accumulated amortization-patents Goodwill $ 21 194 200 12 125 150 400 (120) 60 (28) 60 $1,074 Total assets $ 65 Accounts payable Salaries and wages payable Bond interest payable Income tax payable Deferred tax liability Bonds payable Common shares Retained earnings 4. 8 250 495 227 $1,074 Total liabilities and shareholders' equity SORKIN CORPORATION Statement of Income Year Ended December 31, 2017 ($ in millions) Revenues: $410 Sales revenue Unrealized gain on (FV-NI) investments Investment income from associate $426 Expenses and losses 158 Cost of goods sold Administrative expenses Salaries and wages expense Depreciation and amortization expense Bond interest expense Loss on damaged equipment Loss on impairment of goodwill 65 21 28 18 20 Income before income tax Income tax Net income 332 94 27 $ 67 SORKIN CORPORATION Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2017 ($ in millions) Cash flows from operating activities Net earnings $67 Add back (deduct) non-cash revenues and expenses: Investment income from associate Stoker Inc. Dividends received from associate Stoker Inc. Loss on damaged equipment Depreciation expense Unrealized gain on FV-NI investments Amortization of patent Amortization of bond discount Loss on impairment of goodwill 6 18 19 2 20 4 52 Add (deduct) changes in non-cash working capital Decrease in accounts receivable Increase in inventories Decrease in prepaid expenses Decrease in accounts payable Decrease in salaries and wages payable Increase in deferred tax liability Increase in bond interest payable Decrease in income taxes payable (15) 4 (14) 105 Net cash provided by operating activities Cash flows from investing activities: Proceeds from disposal of damaged equipment Purchase of land (Note 1) Purchase of FV-NI investments 10 (23) (25) Net cash used by investing activities (38) Cash flows from financing activities: Dividends paid Redemption of serial bonds Issuance of preferred shares Repurchase of common shares (60) 75 Net cash used by financing activities Net increase in cash Cash, January 1, 2017 Cash, December 31, 2017 21 $87 Note 1. Non-cash investing and financing activities (a) During the year, land was acquired for $46 million in exchange for cash of $23 million and a $23-million, four-year, 10% note payable to the seller (b) Equipment was acquired through a finance lease that was capitalized initially at $82 million.