The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows:...

The comparative statement of financial position of Blue Spruce Corporation as at December 31, 2020, follows:

The comparative statement of financial position of Monty Inc. as at June 30, 2020, and a statement of comprehensive income for the 2020 fiscal year follow:

MONTY INC. Statement of Financial Position June 30, 2020
	June 30
Assets	2020			2019
Cash	$	20,000		$	42,000
Accounts receivable		86,100			74,100
Inventory		104,000			102,000
Prepaid expenses		2,100			5,600
FV-OCI investments		47,100			45,200
Equipment		177,000			159,000
Accumulated depreciation—equipment		(34,500	)		(25,000	)
Total	$	401,800		$	402,900
Liabilities and Shareholders’ Equity
Accounts payable	$	110,000		$	102,500
Income tax payable		2,200			3,100
Dividends payable		4,300			0
Long-term notes payable		89,300			120,500
Common shares		30,400			24,600
Retained earnings		154,600			143,100
Accumulated other comprehensive income		11,000			9,100
Total	$	401,800		$	402,900

MONTY INC. Statement of Comprehensive Income For the Year Ended June 30, 2020
Net sales		$320,000
Cost of goods sold		161,000
Gross profit		159,000
Operating expenses		123,000
Income from operations		36,000
Interest expense		9,000
Income before income tax		27,000
Income tax		5,900
Net income		21,100
Other comprehensive income
Unrealized gain or loss—OCI		1,900
Comprehensive income		$ 23,000

Additional information:

1.		Monty follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows.
2.		Operating expenses include $9,500 in depreciation expense.
3.		There were no disposals of equipment during the year.
4.		Common shares were issued for cash.
5.		During the year, Monty acquired $8,400 of equipment in exchange for long-term notes payable.

(a)

Prepare the statement of cash flows for Monty for the year ended June 30, 2020, using the indirect method along with any necessary note disclosure

Net income of $37,900 was reported and dividends of $12,500 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $4,800 (cost of $11,900 and accumulated depreciation of $7,100) was sold for $8,100.

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