Asjid Analytics Ltd.’s accountants have developed the following data from the company’s accounting records for the year ended December 31, 2020:

a. Salaries expense, $210,600.

b. Cash payments to purchase property, plant, and equipment, $345,000.

c. Proceeds from issuance of long-term debt, $88,200.

d. Payments of long-term debt, $37,600.

e. Proceeds from sale of property, plant, and equipment, $119,400.

f. Interest revenue, $24,200.

g. Cash receipt of dividend revenue on investments in shares, $5,400.

h. Payments to suppliers, $1,376,600.

i. Interest expense and payments, $75,600.

j. Cost of goods sold, $962,200.

k. Collection of interest revenue, $33,400.

l. Acquisition of equipment by issuing short-term note payable, $91,000.

m. Payment of salaries, $468,000.

n. Credit sales, $1,216,200.

o. Income tax expense and payments, $112,800.

p. Depreciation expense, $103,200.

q. Collections on accounts receivable, $1,346,200.

r. Collection of long-term notes receivable, $138,800.

s. Proceeds from sale of investments, $179,400.

t. Payment of long-term debt by issuing preferred shares, $400,000.

u. Cash sales, $578,000.

v. Proceeds from issuance of common shares, $209,800.

w. Payment of cash dividends, $100,000.

x. Cash balance:

December 31, 2019—$151,600

December 31, 2020—$?

Required

1. Prepare Asjid Analytics’s cash flow statement for the year ended December 31, 2020, reporting operating activities by the direct method. Include a note to the financial statements providing a summary of non-cash investing and financing activities. Assume that the business has adopted IFRS and has elected to place all dividend and interest receipts and payments into operating activities.

2. Assume that Asjid Analytics Ltd. has adopted IFRS and has elected to classify cash inflows from interest and dividends as investing activities and cash outflows for the payment of interest and dividends as financing activities. How would this election change the balances in the three sections of the cash flow statement? Note the balances of each section and comment.