The following financial information is available for Chipmunk Inc. for the 20X3 fiscal year:

Additional information:

1. Marketable securities were sold at their carrying value. The marketable securities are not cash equivalents.

2. A partially depreciated building was sold for an amount equal to its net book value.

3. Cash of $80,000 was received on the sale of a machine.

4. Preferred shares were issued for cash on 1 March 20X3. Dividends of $100,000 were paid on the noncumulative preferred shares.

5. On 1 September 20X3, 50,000 common shares were purchased and retired for $110,000, their original issuance price. On 1 November 20X3, 130,000 common shares were issued in exchange for machinery and valued at $240,000.

6. Because of its loss, the company received a refund of taxes paid in prior years of $108,000.

Required:

1. Prepare the SCF, in good form. Use the indirect method for cash flows from operations. Omit the separate disclosure of cash flows for interest, investment income, and income tax. Include a list of non-cash transactions that would be presented in the disclosure notes.

2. Repeat the operating activities section of the SCF, using the direct method for cash flows from operations.

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Statement of Financial Posltlon As at 31 December 20X3 20X2 Cash $ 10,000 $ 40,000 Receivables 440,000 360,000 Marketable securities 380,000 460,000 Inventory 1,462,000 1,264,000 Land 660,000 820,000 Building 2,080,000 2,240,000 Accumulated depreciation, building (940,000) (760,000) Machinery 2,160,000 1,750,000 Accumulated depreciation, machinery (438,000) (424,000) Goodwill 220.000 220,000