Huang Corp. uses the direct method to prepare its statement of cash flows and follows IFRS. Huang’s trial balances at December 31, 2020 and 2019, were as follows:
Additional information:
1. Huang purchased $5,000 of equipment during 2020.
2. Bad debt expense for 2020 was $5,000 and write offs of uncollectible accounts totalled $4,800.
3. Huang has adopted the policy of classifying the payments of interest as operating activities on the statement of cash flows.
Instructions
Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the direct method.
