The income statement and additional data of Klayquot Consulting Ltd. follow:

Additional data:
a. Collections from clients are $3,500 more than revenues.
b. Increase in cash balance, $5,000.
c. Payments to employees are $2,000 less than salaries expense.
d. Interest expense and income tax expense equal their cash amounts.
e. Acquisition of property, plant, and equipment is $58,000. Of this amount, $50,500 is paid in cash, $7,500 by signing a long-term note payable.
f. Cash received from sale of land, $5,000.
g. Cash received from issuance of common shares, $21,000.
h. Payment of long-term note payable, $10,000.
i. Payment of cash dividends, $7,500.
j. Payments for rent and insurance are equal to expense.
k. Payment for office supplies is $3,000 more than expense.
l. Opening cash balance, $8,000.
Required
Assume Klayquot Consulting Ltd. has adopted IFRS and elects to classify as operating activities all cash inflows and outflows for interest and dividends. Prepare Klayquot Consulting Ltd.'s cash flow statement by the direct method for operating activities, and a note to the financial statements providing a summary of noncash investing and financing activities.

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KLAYQUOT CONSULTING LTD. Income Statement For the Year Ended December 31, 2014 Revenues: Consulting revenue $137,000 Expenses Salaries expense $74,000 14,500 6,000 1,500 1,000 100 Office supplies expense Interest expense Income tax expense 107,000 $30,000 Net income