AP5-9B (Preparation of statement of cash flows) A comparative statement of financial position and a statement of earnings for Standard Card Company follow. STANDARD CARD COMPANY Statement of Financial Position Dec. 31, 2020 Dec. 31, 2019 Assets Current assets Cash $134,000 83,000 $111,000 Accounts receivable 78,000 Inventory 200,000 110,000 Prepaid insurance 10,000 20,000 Total current assets 427,000 319.000 Non-current assets Equipment Accumulated depreciation Total non-current assets 05.000 350,000 (67,000) 238.000 $665.000 (75,000) 275.000 $594.000 Total assets Liabilities Current liabilities S 88,000 Accounts payable 83,000 Interest payable Unearned revenue 3.000 13.000 4,000 18,000 Total current liabilities 104,000 105,000 Long-term debt Total liabilities 100,000 150,000 204.000 255,000 Shareholders' equity Common shares 200,000 115,000 Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 261.000 461,000 224,000 339.000 $665,000 $594,000 STANDARD CARD COMPANY Statement of Income For the year ended December 31, 2020 Sales revenue $207,000 Expenses Cost of goods sold Depreciation expense $97,000 12,000 Insurance expense Interest expense Loss on sale of equipment Income tax eense Total expenses 10,000 8,000 13,000 23.000 163.000 Net income 44.000 Additional information: The loss on the sale of equipment occurred when a relatively new machine with a cost of $10o,000 and accumulated depreciation of $20,000 was sold because a technological change had made it obsolete. Required a. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method