Refer to the financial information presented in P13.2B for Gum San Ltd., a private company following ASPE.
In P13.2B
GUM SAN LTD.
Income Statement
Year Ended December 31, 2018
Sales...............................................................$4,500,000
Cost of goods sold...........................................2,390,000
Gross profit......................................................2,110,000
Operating expenses..........................................1,070,000
Income from operations...................................1,040,000
Interest expense....................................................12,000
Income before income tax...............................1,028,000
Income tax expense............................................260,000
Net income.......................................................$ 768,000
Instructions
(a) Prepare the operating activities section of the statement of cash flows, using the direct method.
(b) Would your answer in part (a) change if Gum San were a public company following IFRS?