Lend Corp. has a primary business model of borrowing funds at low interest rates and lending them out at higher interest rates. The balances in Lend Corporation's balance sheet accounts at December 31, 2017 are as follows:

During 2018, Lend Corp. has the following transactions:

• Received $45,000 in cash interest on notes receivable.

• Paid $16,000 of cash interest on notes payable.

• Collected $10,000 cash from accounts receivable.

• Paid $40,000 cash to reduce accounts payable.

• Owes $3,000 at the end of the year to administrative employees for work performed.

• Building depreciation is an additional $20,000.

Required:
1. Compute Lend Corp's 2018 net income.
2. Show Lend Corp's 12/31/2018 balance sheet.
3. Report Lend Corp's 12/31/2018 statement of cash flows using the indirect method under U.S. GAAP.
4. Report Lend Corp's 12/31/2018 statement of cash flows using the indirect method under IFRS. Record cash flows from interest received in the cash flows from investing section. Record cash flows from interest paid in the cash flows from financing section.
5. Compare your net cash flows from operations computed from requirement 3 vs. requirement 4. Which do you think better reflects Lend Corp's fundamental operating cash flows?

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Liabilities Assets Cash Land Building Accum depr: Building Accounts receivable Notes receivable $300,000 $300,000 $800,000 $160,000 S 20,000 $900,000 Accounts payable Notes payable $ 40,000 800,000 Owners' Equity Retained earnings Contributed capital 320,000 $1,000,000