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 2020 2019 Cash $52,670 $25,040 Accounts receivable 58,060 51,170 Inventory 40,050 60,180 Prepaid rent 5,220 4,030 Equipment 158,010 130,140 Accumulated depreciation-equipment (35,220 ) (25,030) Goodwill 24,000 62,000 Total assets $302,790 $307,530 Accounts payable $46,310 $40,140 Accounts payable $46,310 $40,140 Income 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 Cost of goods sold Gross margin $346,135 165,000 181.135 Operating expenses Operating income 120,000 61,135 Interest expense $11,800 Impairment loss-goodwill 38,000 Gain on disposal of equipment (2,400) 47:400 Income before income tax 13,735 Income tax expense 4,105 Net income $9,630 Additional information: 1. Dividends on common shares in the amount of $3,300 were declared and paid during 2020. Dividends paid are 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. 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 direct method. (Show amounts that decrease cash flow with either a-sign eg.-10 parenthesis eg. (10,000).) Blue Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers < < > >