The income statement and additional data of Wandell 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
1. Prepare Wandell Consulting Ltd.'s cash flow statement by the direct method for operating activities and a note to the financial statements providing a summary of non-cash investing and financing activities.
2. Assume Wandell Consulting Ltd. has adopted IFRS. What would be the difference in the cash flow statement using this framework?

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Wandell CONSULTING LTD Income Statement For the Year Ended December 31,2017 Revenues Consulting revenue $137,000 Expenses Salaries expense Amortization expense Rent expense Office supplies expense Insurance expense Interest expense Income tax expense $74,000 14,500 6,000 1,500 1,000 1,000 9,000 107,000 $30,000 Net income