The following is a list of items for the 2010 statement of cash flows of the Witts Company:
1. Receipt from sale of equipment, $2,700
2. Increase in inventory, $3,900
3. Net income, $13,500
4. Payment for purchase of building, $29,000
5. Depreciation expense, $8,700
6. Receipt from issuance of bonds, $8,000
7. Increase in prepaid expenses, $800
8. Loss on sale of equipment, $2,200
9. Payment of dividends, $5,200
10. Decrease in accounts receivable, $1,700
11. Issuance of common stock for land, $6,900
12. Decrease in accounts payable, $1,500
13. Beginning cash balance, $10,200
Required:
1. Prepare the statement of cash flows.
2. Under IFRS, what alternative treatment of the payment of dividends is allowed?
3.How would this affect the statement of cash flows?