Andrews AG, a greeting card company had the following statements prepared as of December 31, 2019

Andrews AG Comparative Statement of Financial Position is as follows:

12/31/19 12/31/18

Equipment $154,000 $130,000

Accumulated Depreciation equipment (35,000) (25,000)

Copyrights 46,000 50,000

Inventory 40,000 60,000

Short-term investments (nontrading) 35,000 18,000

Prepaid Rent 5,000 4,000

Accounts Receivable 62,000 49,000

Cash 6,000 9,000

Total Assets $313,000 $295,000

Share Capital ordinary -$10 par $100,000 $100,000

Share Premium Ordinary 30,000 30,000

Retained Earnings 57,000 36,000

Long-term loans payable 60,000 67,000

Accounts Payable 46,000 42,000

Income taxes Payable 4,000 6,000

Salaries and Wages Payable 8,000 4,000

Short Term Loans Payable 8,000 10,000

Total Equity and liabilities 313,000 $295,000

Andrews AG

Statement of Comprehensive Income

For the year ending December 31, 2019

Sales Revenue $338,150

Cost of Goods Sold 175,000

Gross Margin 163,150

Operating expenses 120,000

Operating Income 43,150

Interest Expense $11,400

Gain on sale of equipment 2,000 9,400

Income before tax 33,750

Income tax expense 6,750

Net Income $27,000

Additional Information:

1. Dividends in the amount of $6,000 were declared and paid during 2019.

2. Depreciation expense and amortisation expense are included in operating expenses.

3. No unrealised gains or losses have occurred on the investments during the year.

4. Equipment that had a cost of $30,000 and was 70% depreciated was sold during 2019.

Required: Prepare a statement of cash flows using the direct method