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

Net income of $37,000 was reported and dividends of $13,000 were declared and paid in 2020. New equipment was purchased, and equipment with a carrying value of $5,000 (cost of $12,000 and accumulated depreciation of $7,000) was sold for $8,000.

Instructions

Prepare a statement of cash flows using the indirect method for cash flows from operating activities. Assume that Sensify prepares financial statements in accordance with ASPE.

Transcribed Image Text:

Sensify Corporation Statement of Financial Position December 31 December 31 2020 $ 53,000 Assets 2019 $ 13,000 Cash Accounts receivable 91,000 88,000 Equipment Less: Accumulated depreclation 27,000 22,000 (11,000) (10,000) Total $161,000 $112,000 December 31 Liabilities and Shareholders' Equity Accounts payable Common shares Retained earnings 2020 2019 $ 20,000 $ 15,000 100,000 80,000 41,000 17,000 Total $161,000 $112,000