Chapter 5: Ques 3:

The comparative statement of financial position of Flint Corporation as at December 31, 2020, follows:

FLINT CORPORATION Statement of Financial Position December 31
		December 31
Assets		2020		2019
Cash		$	53,000		$	11,400
Accounts receivable			89,800			89,000
Equipment			26,700			22,000
Less: Accumulated depreciation			(10,400	)		(10,800	)
Total		$	159,100		$	111,600
Liabilities and Shareholders' Equity
Accounts payable		$	19,900		$	14,800
Common shares			100,000			80,600
Retained earnings			39,200			16,200
Total		$	159,100		$	111,600

Net income of $36,000 was reported and dividends of $13,000 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,400 (cost of $11,800 and accumulated depreciation of $7,400) was sold for $7,600. a) Present a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Flint prepares financial statements in accordance with ASPE. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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