Azure Ltd. had the following 2020 income statement data:
Sales revenue……………………………………………………………..$205,000
Cost of goods sold………………………………………………………..120,000
Gross profit…………………………………………………………………….85,000
Operating expenses (includes depreciation of $21,000)….50,000
Income before income taxes 35,000 Income taxes 15,000
Net income……………………………………………………………………$ 20,000
The following accounts increased during 2020 by the amounts shown: Accounts Receivable, $17,000; Inventory, $11,000; Accounts Payable (relating to inventory), $13,000; Taxes Payable, $2,000; and Mortgage Payable, $40,000.
(a) Prepare the cash flows from operating activities section of Azure’s 2020 statement of cash flows using the direct method and following IFRS.
(b) How would the disclosure requirements differ under ASPE?
