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 $ 44,825 $ 25,150 Accounts receivable 58,090 51,130 Inventory 39,880 60,030 Prepaid rent 5,090 4,020 Equipment 165,200 130,090 Accumulated depreciation-equipment (35,090) ( 25,020) Goodwill 22,000 58,000 Total assets $299,995 $ 303,400 Accounts payable $ 46,200 $ 40,090 Income tax payable 3,880 6,030 Salaries and wages payable 8,150 4,150 Short-term loans payable 8,090 10,130 Long-term loans payable 62,000 77,000 Common shares 130,000 130,000 Retained earnings 41,675 36,000 Total liabilities and shareholders' equity $299,995 303,400 BLUE INC. Income Statement Year Ending December 31, 2020 Sales revenue $ 344,180 Cost of goods sold 165,000 Gross margin 179,180 Operating expenses 120,000 Operating income 59,180 Interest expense $ 11,700 Impairment loss-goodwill 36,000 Gain on disposal of equipment (2,300) 45,400 Income before income tax 13,780 Income tax expense 4,105 Net income $ 9,675 Additional information: 1. Dividends on common shares in the amount of $ 4,000 were declared and paid during 2020. Dividends paid are treated as finar 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $ 72,000. Equipment with a cost of $ 34,000 that was 70% depreciated was sold during 2020. 3. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis 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: Depreciation Expense $ Impairment Loss, Goodwill Gain on Disposal of Equipment Increase in Accounts Receivable Decrease in Inventory U Increase in Prepaid Rent Increase in Accounts Payable Increase in Salaries and Wages Payable Decrease in Income Tax Payable Total Adjustments Net Cash Provided by Operating Activities, Cash Flows from Investing Activities Proceeds on Sale of Equipment Purchase of Equipment Net Cash Used by Investing Activities Cash Flows from Financing Activities Principal Payments on Short-Term Loans - Principal Payments on Long-Term Loans Dividends paid Net Cash Used by Financing Activities Net Cash Used by Financing Activities Net Increase in Cash Cash, January 1, 2020 Cash, December 31, 2020 $