1-Ned is responsible for preparing the cash flow statement for his employer, Small Corp. (Small). Small prepares its operating activities section using the indirect method, as follows:

Net income	$230,000
Gain on sale of capital assets	(25,000)
Provision for future income taxes	52,000
Change in non-cash working capital accounts:
Decrease in prepaid expenses	21,000
Increase in accounts receivable	(32,000)
Decrease in inventory	43,000
Decrease in accounts payable	(14,000)
Increase in deferred revenue	25,000
Cash from operations	$300,000
Additional information:
Sales	$2,323,000
Cost of sales	1,394,000

The CFO has asked Ned what the cash flow statement would look like if it was prepared using the direct method. Under the direct method, what amount would be reported as cash collected from customers? Small prepares its financial statements in accordance with ASPE.

Question 22 options:

	$2,291,000
	$2,330,000
	$2,316,000
	$2,355,000

2-Sassafras Inc. is preparing its statement of cash flows (SCF) for its 2020 fiscal year. Extracts from the statement of financial position are provided below:

	2020	2019
Accounts receivable	$157,000	$142,000
Inventories	65,000	79,000
Accounts payable	215,000	195,000
Income taxes payable	2,000	3,000
Interest payable	3,000	5,000

Select information from its statement of comprehensive income is as follows:

• Total comprehensive income $325,000
• Other comprehensive income $6,000
• Interest expense $10,000
• Depreciation and amortization $112,000
• Gain on sale of equipment $7,000

Sassafras reports using IFRS and its policy is to report interest paid as a financing activity. What amount of cash flow from operations will Sassafras report on its 2020 SCF?

Question options:

	$412,000
	$440,000
	$458,000
	$452,000