Information from the statement of financial position and statement of income are given below for North Road Inc., a company following ASPE, for the year ended December 31.

Additional information:
1. Investments in land were sold at cost during 2014.
2. Equipment costing $56,000 was sold for $15,550, resulting in a gain.
3. Common shares were issued in exchange for some equipment during the year. No other shares were issued.
4. The remaining purchases of equipment were paid for in cash.
Instructions
(a) Prepare a statement of cash flows for the year ended December 31, 2014, using the indirect method.
(b) Prepare the operating activities section of the statement of cash flows using the direct method.
(c) Does North Road Inc. have a choice in how it classifies dividends paid on the statement of cash flows?

Comparative Statement of Financial Position, at December 31 2014 2013 Cash Accounts receivable Inventory Investments in land Property, plant, and equipment Accumulated depreciation $ 92,700 47,250 37,000 102,650 107,000 205,000 40,000 90,800 121,900 84,500 290,000 -49,500 $630,400 $458,900 Accounts payable Accrued liabilities Notes payable Common shares Retained earnings 52,700 48,280 18,830 70,000 200,000 121,790 $630,400 $458,900 12,100 140,000 250,000 175,600 Statement of Income, Year Ended December 31, 2014 Revenues Sales Gain on sale of equipment $297,500 8,750 306,250 Expenses Cost of goods sold Depreciation expense Operating expenses Income tax expense Interest expense Net income $99,460 58,700 14,670 39,000 2,940 214,770 $91,480