Whiskey Industries Ltd., a Nanaimo, British Columbia–based company, has a December 31 year end. The company’s comparative statement of financial position and its statement of income for the most recent fiscal year are presented here, along with some additional information:

1. During the year, Whiskey Industries sold, for $500 cash, equipment that had an original cost of $1,000 and a net carrying amount of $200.

2. Whiskey Industries borrowed an additional $8,000 by issuing notes payable in 2020.

3. During the year, the company purchased a piece of land for a future manufacturing site for $200,000. The land was purchased with no money down and the company entered into a mortgage payable for the full amount.

Required

a. Using the information above, prepare the statement of cash flows for Whiskey Industries Ltd. for the year ended December 31, 2020, using the indirect method.

b. Determine the cash flows from operating activities using the direct method.

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WHISKEY INDUSTRIES LTD. Statement of Financial Position As at December 31, 2020 2020 2019 Assets Current assets $ 6,050 $ 19,500 Cash Accounts receivable 10,000 20,000 Prepaid rent 600 500 Inventory 40,000 30,000 Total current assets 56,650 70,000 Manufacturing equipment 159,000 100,000 Accumulated depreciation, manufacturing (69,200) (50,000) equipment Land 200,000 $346,450 Total assets $120,000