Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. Huang’s trial balances at December 31, 2023 and 2022, were as follows:

Additional information:

1. Huang purchased $5,000 of equipment during 2023.

2. Loss on impairment for accounts receivable for 2023 was $5,000 and write-offs of uncollectible accounts totalled $4,800.

3. Huang has adopted the policy of classifying the payments of interest as operating activities on the statement of cash flows.

Instructions

a. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2023, using the direct method.

b. Prepare visualizations in Excel outlining the various inflows/outflows summarized in part (a) for the operating activities section of the statement of cash flows.

Debits Cash Accounts receivable Inventory Property, plant, and equipment Cost of goods sold Selling expenses Administrative expenses Interest expense Income tax expense Credits Allowance for expected credit losses Accumulated depreciation Accounts payable Income taxes payable Deferred income tax liability 8% callable bonds payable Common shares Retained earnings Sales revenue Dec. 31, 2023 $ 55,000 33,000 31,000 95,000 253,000 138,000 140,000 15,600 20,200 $780,800 $ 1,300 26,500 25,000 21,000 5,300 46,000 53,600 44,700 557,400 $780,800 Dec. 31, 2022 $ 31,000 30,000 47,000 90,000 380,000 172,000 151,300 28,600 56,200 $986,100 $ 1,100 25,000 15,500 29,100 4,600 45,500 22,000 64,600 778,700 $986,100