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) (25,030) 24,000 62,000 $302,790 $307,530 Accounts payable $46,310 $40,140 16C Clou Accounts payable $46,310 $40,140 ncome tax payable 4,050 6,180 Salaries and wages payable 8,040 4,040 Short-term loans payable 8,060 10,170 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 $346,135 Cost of goods sold 165,000 Gross margin 181,135 Operating expenses 120,000 Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on disposal of equipment Income before income tax Income tax expense Net income Additional information: 120,000 61,135 $11,800 38,000 (2,400) 47,400 13.735 4,105 $9,630 1. 2. Dividends on common shares in the amount of $3,300 were declared and paid during 2020. Dividends paid are treate 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. I Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,00 parenthesis e.g. (15,000).) repare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign eg.-15,000 o arenthesis e.g. (15,000).) Blue Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income/(Loss) Adjustments to reconcile net income/loss to net cash provided by operating activities: 9630 1A