Additional Data: a. Company bought new equipment for $2,000 cash and sold existing equipment for $500 cash. The equipment that was sold was purchased for $1,300 and had Accumulated Depreciation of $250 at the time of sale. b. Borrowed $1,000 cash from the bank during the year. Required: Prepare the statement of cash flows for the year ended December 31, 2020, using the indirect method. Bike Winner Company was started several years ago by two down hill bike racing enthusiasts. The company's comparative balance sheets and income statement along with additional information are provided below. 2020 2019 Balance Sheet at December 31 $ 4,000 1,750 Cash $6,500 Accounts Receivable 500 Equipment Less: Accumulated Depreciation 5,700 (1,500) 5,000 (1,250) $11,000 $ 9,500 Accounts Payable $ 800 $ 1,000 Wages Payable Long-Term Bank Loan Payable Contributed Capital Retained Earnings 200 750 1,500 5,000 3,500 500 5,000 2,250 $11,000 $ 9,500 Income Statement for 2020 $37,500 35,000 Lessons Revenue Wages Expense Depreciation Expense Loss on Disposal of Equipment Income Tax Expense 500 550 200 Net Income $ 1,250