Use the following information to answer questions 1 and 2. Islanders...

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Accounting

Use the following information to answer questions 1 and 2.

Islanders Inc.

Statement of financial position

As at December 31

20X3

20X2

Accounts receivable

$160,000

$110,000

Inventory

62,000

50,000

Prepaid expenses

3,000

4,000

Investments at FVPL

18,000

40,000

Investments at FVOCI

18,000

13,000

Property, plant and equipment (net)

80,000

100,000

Land

180,000

94,000

$521,000

$411,000

Bank overdraft

$9,000

$32,000

Accounts payable

30,000

20,000

Other current liabilities

45,000

60,000

Bank loans

37,000

50,000

Bonds payable

200,000

100,000

Share capital

30,000

10,000

Retained earnings

159,000

133,000

Reserves (AOCI)

11,000

6,000

$521,000

$411,000

Islanders Inc.

Statement of comprehensive income

Year ended December 31

20X3

Sales

$555,000

Depreciation expense

20,000

Interest expense

4,000

Other expenses

380,000

Operating income

$151,000

Gain on sale of land

5,000

Loss on disposition of investment at FVPL

(2,000)

Net income before income tax expense

$154,000

Income tax expense

24,000

Net income

$130,000

Other comprehensive income

5,000

Comprehensive income

$135,000

Additional information:

In 20X3, Islanders Inc. issued $100,000 in bonds to acquire land having a fair value of

$100,000.

a. What is the amount that Islanders Inc. will report as cash from investing activities on its statement of cash flows for its year ended December 31, 20X3?

b. What is the amount that Islanders Inc. will report as cash from financing activities on its statement of cash flows for its year ended December 31, 20X3?

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