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 2016.

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, 2016, 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, 2016 2016 2015 Assets Current assets S 19,500 20,000 500 30,000 70,000 100,000 (50,000) Cash 6,050 10,000 Accounts receivable Prepaid rent 600 Inventory Total current assets Manufacturing equipment Accumulated depreciation, manufacturing equipment Land 40,000 56,650 159,000 (69,200) 200,000 $346,450 Total Assets $120,000 Liabilities and Shareholders' Equity Current liabilities Accounts payable 11,000 600 470 12,070 200,000 46,000 29,000 59,380 $346,450 S6,000 400 300 6,700 Wages payable Dividends payable Total current liabilities Mortgage payable Notes payable Common shares Retained earnings 40,000 25,000 48,300 $120,000 Total Liabilities and Shareholders' Equity WHISKEY INDUSTRIES LTD Statement of Income For the Year Ending December 31, 2016 Sales Cost of goods sold Gross margin Expenses $130,000 80,000 50,000 Rent expense Wage expense Depreciation expense Interest expense Inc 7,100 9,600 20,000 600 520 12,180 300 12,480 ome tax expense Income from operations Gain on sale of equipment Net income