The following data were provided by the accounting records of NewFort Limited at year- end, 31 December 20X9:

Analysis of selected accounts and transactions:

a. Sold plant assets for cash; cost, $ 252,000; two- thirds depreciated.

b. Purchased plant assets for cash.

c. Purchased plant assets and exchanged unissued bonds payable of $ 190,000 in payment.

d. Sold the long- term investments for cash.

e. Retired bonds payable at maturity date by issuing common shares, $ 65,000.

f. Other changes in asset, liability, and equity accounts flow from logical sources.

Required:

1. Prepare the SCF, using the two- step indirect method to present the operations section. Omit separate disclosure of cash paid for interest and income tax in the operating activi-ties section of the SCF. Include a list of non- cash transactions that would be presented in the disclosure notes.

2. Prepare the operating activities section of the SCF using the direct method.

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Statement of Financial Position As of 31 December 20X9 20X8 Debits Cash Accounts receivable Inventory Long-term investments Property, plant, and equipment $ 21,000 $ 12,000 196,000 393,000 91,000 960,000 296,000 362,000 1,196,000 Total debits $1,875,000 $1,652,000 Credits Accumulated depreciation Accounts payable Interest payable Deferred tax Bonds payable Common shares $ 576,000 191,500 13,500 47,000 180,000 250,000 394,000 $1,652,000 $ 470,000 154,500 16,500 71,000 350,000 480,000 333,000 $1.875,000 Retained earnings Total credits Statement of Comprehensive Income Year ended 31 December 20X9 Sales Cost of goods sold Depreciation expense Remaining expenses Loss on sale of operating assets Gain on sale of investments $2,457,000 (1,689,000) (62,000) (572,000) (9,000) 36,000 $ 161,000 Net earnings and comprehensive income