Blue Inc., a greeting card company that follows ASPE. had the following statements prepared as at December 31, 2020: BLUE INC. Comparative Statement of Financial Position December 31 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Goodwill Total assets 2020 2019 $52,670 $25.040 58,060 51.170 40,050 60,180 5.220 4,030 158.010 130.140 (35.220) (25,000) 24,000 62,000 $302,790 $307,530 Accounts payable 546.310 $40,140 Income tax payable 4,050 6.180 Salaries and wages payable 8.040 4,040 Short-term loans payable 8060 10.170 Low-term loan payable 64.000 81,000 Long-term loans payable 64.000 81,000 Common shares 130,000 130,000 Retained earnings 42,330 36.000 Total liabilities and shareholders' equity $302,790 307,530 BLUE INC. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill $346.135 165.000 181.135 120,000 61.135 $11.800 4 38.000 (2.400) 47,400 13.735 Gain on disposal of equipment Income before income tax Income tax expense Net income 4.105 $9,630 Additional information Dividends on common shares in the amount of $3.300 were declared and paid during 2020. Dividends paid are treated as finan 1 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $70,000 3. Equipment with a cost of $24,000 that was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign eg.-15,000 or in parenthesis eg. [15,000)) Blue Inc. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income/loss to net cash provided by operating activities Blue Inc. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income/loss to net cash provided by operating activities eTextbook and Media b