Condensed financial data of Tobita Limited, which follows ASPE, for 2014 and 2013 follow:

Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2014.
Instructions
(a) Prepare a statement of cash flows using the indirect method.
(b) Prepare a statement of cash flows using the direct method.
(c) Does Tobita Limited have any options on how to classify interest and dividends paid on the statement of cash flows?
(d) What would you consider to be an alarming trend that is revealed by the statements that you have prepared? Is it as easy to notice this trend using the direct method, as in part (b)?

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TOBITA LIMITED Comparative Statement of Financial Position December 31 2014 $1,935 1,300 1,750 1,600 1,900 (1,200) $7,285 2013 Cash FV-NI investments Accounts receivable Inventory Plant assets Accumulated depreciation $1,150 1,420 1,300 1,900 1,700 (1,170) $6,300 Accounts payable Accrued liabilities Bonds payable Share capital Retained earnings $ 900 250 1,550 1,700 1,900 $1,200 200 1,400 1,900 2,585 $7,285 TOBITA LIMITED Income Statement Year Ended December 31, 2014 $6,900 4,700 2,200 910 1,290 Sales Cost of goods sold Gross margin Administrative expenses Income from operations Other expenses and gains Interest expense Gain on sale of investments (FV-NI) Income before tax Income tax expense Net income $(20) 80 60 1,350 405 945