Golf Is Great Corp.€™s condensed balance sheet for the year ended December 31, 2017, follows:

Golf Is Great€™s 2018 transactions are as follows:

1. Net income for the year was $27,000 after recording $20,000 in depreciation expense on the plant and equipment.
2. Received cash proceeds of $20,000 from the issuance of preferred shares.
3. Purchased $10,000 inventory on account.
4. Received $19,000 cash from the sale of at fair value through other comprehensive income investments. The book value of the securities sold was $22,000.
5. Issued $100,000 in bonds to acquire land having a fair value of $100,000.
6. Declared and paid dividends totalling $25,000. Golf Is Great has a policy of including dividends paid in the financing section.
7. Made a $10,000 principal payment on the bank loan.

Required:
a. Prepare a statement of cash flows for 2018 using the indirect method.
b. Discuss how the transaction(s) above that are not reported on the statement of cash flows are reported in the financial statements.
c. Prepare a balance sheet as at December 31, 2018. Assume that other current assets and other current liabilities remain unchanged.
d. Golf €™s policy is to report dividends paid as a cash outflow from financing activity. What are its alternatives in this respect? How would the statement of cash flows that you prepared in (a) differ if Golf had adopted the alternative presentation method?

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Golf Is Great Corp. Balance Sheet As at December 31, 2017 $ 30,000 $ 20,000 Cash Accounts payable Inventory Other current liabilities 50,000 60,000 Other current assets 60,000 Bank loans 50,000 Investments-at fair value through other comprehensive income Plant and equipment (net) Bonds payable 40,000 100,000 Share capital Retained earnings 100,000 10,000 Land 80,000 120,000 $360,000 $360,000