ADDITIONAL INFORMATION:

		Depreciation expense is included in operating expenses. All accounts payable transactions were related to the purchase of inventory.
		During the year, a piece of equipment that originally cost $53,100 was sold for cash. The equipment was 70% depreciated at the time of the sale.
		Long-term investments were purchased for cash during the year.

Prepare a statement of cash flows, in good form, for Vaughn Inc., using the direct method. Vaughn Inc. follows ASPE.

Current Attempt in Progress Vaughn Inc. reported the following information at the end of its 2019 fiscal year. Vaughn Inc. Statement of Financial Position As at April 30 Assets 2020 Cash 208,000 Accounts receivable 115,000 Inventory 112,000 Prepaid operating expenses 22,000 Long term investments 186,000 Equipment 1,244,000 Less: Accumulated depreciation (369,000) 1,518,000 Liabilities and Shareholders' Equity Accounts payable 52,000 Income tax payable 26,000 Bonds payable 676,000 Common shares 290,000 Retained earnings 474,000 1,518,000 2019 149,000 94,000 247,000 13,000 83,000 1,162,000 (377,000) 1,371,000 66,000 25,000 765,000 249,000 266,000 1,371,000 Vaughn Inc. Income Statement For the year ended April 30, 2020 Sales revenue 1,144,000 Cost of goods sold 685,000 Gross profit 459,000 Operating expenses 225,000 Income from operations 234,000 Interest expense 4,900 Gain on disposal of equipment 3,700 Income before income tax 232,800 Income tax expense 18,650 Net income $214,150