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Stanger Ltd.s financial statements for the year ended December 31, 2020, are as

follows: Stanger Ltd. Statement of financial position As at December 31
	2020	2019
Cash	$ 91,000	$ 85,000
Investments at fair value through profit or loss (FVPL)	11,000	13,000
Accounts receivable (net)	406,000	374,000
Inventory	501,000	522,000
Land	365,000	212,000
Equipment	1,645,000	1,344,000
Less: Accumulated depreciation	(412,000)	(389,000)
Trademark (net)	140,000	162,000
	$ 2,747,000	$ 2,323,000
Accounts payable	$ 457,000	$ 460,000
Income taxes payable	25,000	75,000
Note payable	93,000
Bonds payable	608,000	625,000
Common shares	329,000	239,000
Preferred shares	400,000	380,000
Retained earnings	835,000	544,000
	$ 2,747,000	$ 2,323,000

Stanger Ltd.

Statement of comprehensive income

For the year ended December 31, 2020

Sales	$	4,859,595
Cost of goods sold		3,002,145
Gross profit		1,857,450
Depreciation of equipment		318,700
Interest expense		40,500
Other expenses		735,750
Operating income		762,500
Impairment loss trademark		40,000
Income before income taxes		722,500
Income tax expense		293,000
Net income	$	429,500

Additional information:

• Stanger has adopted an accounting policy of classifying cash inflows from interest and dividends as operating activities and cash outflows for interest and dividends as financing activities.
• Stanger did not buy or sell any investments at FVPL during the year. The reported change in value is due to a decrease in the market value of the investment.
• The company nets many items to other expenses for example, salaries, gains and losses on fixed asset sales, and holding gains and losses in investments at FVPL.
• During the 2020 fiscal year, Stanger issued a $100,000 note payable to a vendor in exchange for equipment with a fair value of $100,000. The interest rate on the note reflected the market rate for liabilities of this nature.
• $90,000 of common shares and $20,000 of preferred shares were issued by Stanger to acquire $110,000 of equipment.
• Stanger successfully defended its right to a trademark. Related legal costs totalled $18,000.
• The decrease in the bonds payable account was due to a principal payment made in the year.
• Stanger sold equipment originally costing $420,000 for $75,000.

Required:

1. Prepare a statement of cash flows for Stanger as at December 31, 2020. For the operating activities section, use the indirect method. Assume that the company follows IFRS for reporting purposes.

2. Identify what supplemental note disclosure, if any, is required.

Prepare the operating activities section of the statement of cash flows for Stanger as at December 31, 2020, using the direct method.

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