The following is a list of items for Witts Company’s 2019 statement of cash flows:
a. Receipt from sale of equipment, $2,700
b. Increase in inventory, $3,900
c. Net income, $13,500
d. Payment for purchase of building, $29,000
e. Depreciation expense, $8,700
f. Receipt from issuance of bonds, $8,000
g. Increase in prepaid expenses, $800
h. Loss on sale of equipment, $2,200
i. Payment of dividends, $5,200
j. Decrease in accounts receivable, $1,700
k. Issuance of common stock for land, $6,900
l. Decrease in accounts payable, $1,500
m. Beginning cash balance, $10,200

Required:
1. Prepare the statement of cash flows.
2. Under IFRS, what alternative treatment of the payment of dividends is allowed? How would this affect the statement of cash flows?