Bramble Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: BRAMBLE INC. Comparative Statement of Financial Position December 31 2020 2019 Cash $52,775 $25,080 Accounts receivable 58,010 51,180 Inventory 39,930 60,110 Prepaid rent 5,170 4,140 Equipment 157,830 130,120 Accumulated depreciation-equipment (35,170) (25,140) Goodwill 30,000 68,000 Total assets $308,545 $313,490 Accounts payable $46,230 Income tax payable 3,930 Salaries and wages payable 8,080 Short-term loans payable 8,010 Long-term loans payable 70,000 Common shares 130,000 Retained earnings 42,295 Total liabilities and shareholders' equity $308,545 $40,120 6,110 4,080 10,180 87,000 130,000 36,000 313,490 BRAMBLE INC. Income Statement Year Ending December 31, 2020 Sales revenue $346,120 Cost of goods sold 165,000 Gross margin 181,120 Operating expenses 120,000 Operating income 61,120 Interest expense $12,300 Impairment loss-goodwill 38,000 Gain on disposal of equipment (3,000) 47,300 Income before income tax 13,820 Income tax expense 4,125 Net income $9,695 Additional information: 1. Dividends on common shares in the amount of $3,400 were declared and paid during 2020. 2. Depreciation expense is included in operating expenses, as is salaries and wages expense of $74,500. 3. Equipment with a cost of $40,000 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 e.g. -10,000 or in parenthesis e.g. (10,000).) Bramble Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 TCash Flows from Operating Activities TCash Received from Customers 339,290 T Cash Paid to Suppliers for Goods and Services 138,710 T Cash Paid for Other Operating Expenses 18,820 T Cash Paid to and on Behalf of Employees 70,500 T Cash Paid for Interest 12,300 T Cash Paid for Taxes 6,305) 246,635 * Net Cash Provided by Operating Activities 92,655 TCash Flows from Investing Activities T Proceeds on Sale of Equipment 15,000 T Purchase of Equipment MT 6 7,710|| TNet Cash Used by Investing Activities (52,710) TCash Flows from Financing Activities T Principal Payments on Short-Term Loans (2,170) T Principal Payments on Long-Term Loans (17,000) T Dividends Paid (3,400) TNet Cash Used by Financing Activities (22,570) Net Increase in Cash 17,375 TCash, January 1, 2020 25,080 TCash, December 31, 2020 42,455