1. Harlee Company is completing their annual financial statements for 2020. The financial statements are complete except for the cash flow statement. The following statements are shown below: Harlee Company Statement of Financial Position as at December 31 Harlee Company Statement of Earnings for the year ended December 31, 2020 2020 2019 Assets Cash Accounts receivable Inventory Prepaid expenses Property, plant and equipment, net $33,000 $18,000 26,000 28,000 39,000 36,000 1,500 500 82,500 72,000 $182,000 $154,500 Sales Cost of goods sold Expenses Net earnings $85,000 $43,000 31,500 $10,500 Liabilities and Shareholders' Equity Accounts payable Wages payable Notes payable, long term Contributed capital Retained earnings $27,000 $21,000 1,500 1,000 43,000 48,000 78,500 60,000 32,000 24,500 $182,000 $154,500 Additional information: Equipment was purchased for cash, $15,000 Paid $5,000 on the long-term note payable Sold unissued shares for $18,500 cash Declared and paid a $3,000 cash dividend Incurred the following expenses: depreciation, $4,500, wages, $13,000, income taxes, $3,000 and other, $11,000. Required: Prepare the statement of cash flows using the indirect method. 1