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 2019 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Goodwill Total assets 2020 $44,825 58,090 39,880 5,090 165,200 (35,090 ) 22,000 $299,995 $25,150 51,130 60,030 4,020 130,090 (25,020) 58,000 $303,400 Accounts payable $46,200 Income tax payable 3,880 Salaries and wages payable 8,150 Short-term loans payable 8,090 Long-term loans payable 62,000 Common shares 130,000 Retained earnings 41,675 Total liabilities and shareholders' equity $299,995 $40,090 6,030 4,150 10,130 77,000 130,000 36,000 303,400 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 Gain on disposal of equipment Income before income tax Income tax expense Net income $11,700 36,000 (2,300 ) $344,180 165,000 179,180 120,000 59,180 45,400 13,780 4,105 $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 financing activities. 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $72,000. 3. Equipment with a cost of $34,000 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 e.g.-15,000 or in parenthesis e.g. (15,000).) Blue Inc. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income/loss to net cash provided by operating activities: $ IN $