A comparative statement of financial position and a statement of earnings for GBC Company follow.

GBC COMPANY Statement of Financial Position
		Dec. 31, 2021	Dec. 31, 2020
Assets
Current assets
Cash		$134,000	$111,000
Accounts receivable		83,000	78,000
Inventory		200,000	110,000
Prepaid insurance		10,000	20,000
Total current assets		427,000	319,000
Non-current assets
Equipment		305,000	350,000
Accumulated depreciation		(67,000)	(75,000)
Total non-current assets		238,000	275,000
Total assets		$665,000	$594,000
Liabilities
Current liabilities
Accounts payable		$88,000	$83,000
Interest payable		3,000	4,000
Unearned revenue		13,000	18,000
Total current liabilities		104,000	105,000
Long-term debt		100,000	150,000
Total liabilities		204,000	255,000
Shareholders' equity
Common shares		200,000	115,000
Retained earnings		261,000	224,000
Total shareholders' equity		461,000	339,000
Total liabilities and shareholders' equity		$665,000	$594,000
GBC COMPANY Statement of Income For the year ended December 31, 2021
Sales		$207,000
Expenses
Cost of goods sold	$97,000
Depreciation expense	12,000
Insurance expense	10,000
Interest expense	8,000
Loss on sale of equipment	13,000
Income tax	23,000
Total expenses		163,000
Net income		$44,000

Additional information:

The loss on the sale of equipment occurred when a relatively new machine with a cost of $100,000 and accumulated depreciation of $20,000 was sold because a technological change had made it obsolete.

Required

Prepare a statement of cash flows for the year ended December 31, 2020, using the direct method.

(20 marks)