Sell Corp. has a primary business model of buying and selling merchandise inventory. The balances in Sell Corporation's balance sheet accounts at December 31, 2017 are as follows:

During 2018, Sell Corp. has the following transactions:

• Received $5,000 in cash interest on notes receivable.

• Paid $16,000 of cash interest on notes payable.

• Collected $10,000 cash from Accounts receivable.

• Paid $40,000 cash to reduce Accounts payable.

• Owes $30,000 at the end of the year to employees for work performed.

• Building depreciation is an additional $20,000.

• Sold $200,000 of inventory at a retail price of $400,000. Received $350,000 in cash but $50,000 is still due from customers.

Required:
1. Compute Sell Corp's 2018 net income.
2. Show Sell Corp's 12/31/2018 balance sheet.
3. Report Sell Corp's 12/31/2018 statement of cash flows using the indirect method under U.S. GAAP.
4. Report Sell Corp's 12/31/2018 statement of cash flows using the indirect method under IFRS. Record cash flows from interest received in the cash flows from investing section. Record cash flows from interest paid in the cash flows from financing section.
5. Compare your net cash flows from operations computed from requirement 3 vs. requirement 4. Which do you think better reflects Sell Corp's fundamental operating cash flows?

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Liabilities Assets Cash Land Building Accum depr: Building Inventory Accounts receivable Notes receivable S 40,000 800,000 $300,000 $300,000 $800,000 $160,000 $800,000 $ 20,000 $900,000 Accounts payable Notes payable Owners' Equity Retained earnings Contributed capital 320,000 $1,000,000