Statement of Cash Flows The following is a list of items for Witts Company’s 2016 statement of cash flows:
a. Receipt from sale of equipment, $2,700
b. Increase in inventory, $3,900
c. Net income, $13,500
d. Payment for purchase of building, $29,000
e. Depreciation expense, $8,700
f. Receipt from Issuance of bonds, $8,000
g. Increase in prepaid expenses, $800
h. Loss on sale of equipment, $2,200
i. Payment of dividends, $5,200
j. Decrease in accounts receivable, $1,700
k. Issuance of common stock for land, $6,900
1. Decrease in accounts payable, $1,500
m. Beginning cash balance, $10,200
1. Prepare the statement of cash flows.
2. Next Level Under IFRS, what alternative treatment of the payment of dividends is allowed? How would this affect the statement of cash flows?