The comparative balance sheet of Graphic Design Studio Inc. at June 30, 2017, included these amounts:

Transaction data for the year ended June 30, 2017, were:
a. Net income, $60,300
b. Depreciation expense on equipment, $13,400
c. Purchased long-term investment, $4,900
d. Sold land for $46,900, including $6,700 loss
e. Acquired equipment by issuing long-term note payable, $14,300
f. Paid long-term note payable, $61,000
g. Received cash for issuance of common shares, $3,900
h. Paid cash dividends, $38,100
i. Paid short-term note payable by issuing common shares, $4,700
Requirement
Prepare the statement of cash flows of Graphic Design Studio Inc. for the year ended June 30, 2017, using the direct method to report operating activities. Also, prepare the accompanying schedule of non-cash investing and financing activities. All current accounts except short-term notes payable result from operating transactions. The accounting records provide the following: collections from customers, $261,800; interest received, $1,300; payments to suppliers, $133,500; payments to employees, $40,500; payments for income tax, $10,600; payment of interest, $5,300?

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Graphic Design Studio Inc. Balance Sheet As at June 30, 2017 and 2016 Increase (Decrease) 2 2017 2016 3 Current assets: 4 Cash Accounts receivable Inventories $ 28,600 $8,60020,000 48,800 68,600 51,900 60,200 2,800 5,200 73,600 96,000 8,400 900 7 Prepaid expenses 4,900 900 (53,600) $276,700 298,300(21,600) 3,700 10,100 74,500 42,400 8 Long-term investment uipment, net 10 Land 12 Current liabilities: 13 14 Accounts payable 15 Income tax payable 16 Accrued liabilities 17 18 Sala 19 Long-term note payable 20 Share capital 21 Retained earnings Notes payable, short-term $ 13,400 18,100$ (4,700) 2,100 (700) (1,500) 42,400 13,800 8,200 3,700 900 47,400 59,800 87,100 $276,700 40,300 14,500 9,700 2,900 2,600 94,100 51,200 64,900 $298,300 Interest payable (1,700) 46,700) 8,600 22,200 (21,600 23