Bramble Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2023: BRAMBLE Inc. Comparative Statement of Financial Position December 31 2023 2022 Cash $68.106 $53.750 Accounts receivable 58.300 50,000 Inventory 41,400 70.500 Prepaid rent 5.500 4.100 Equipment 150.000 133,500 Accumulated depreciation-equipment (31,000) (23,200) Total assets $292,306 $288,650 Accounts payable $48,600 $39,500 Income tax payable 4,000 6.100 Long-term loans payable 60,500 69,500 Common shares 131,400 131,400 Retained earnings 47,806 42,150 Total liabilities and shareholders' equity $292,306 $288.650 BRAMBLE Inc. Income Statement Year Ended December 31, 2023 Sales revenue $390,000 229,500 Cost of goods sold 160,500 Gross margin 118,300 Operating expenses 42.200 Operating income Interest expense $12,000 Gain on disposal of equipment (2,600) 9 400 32 800 Income before income tax 15.744 Income tax expense Net income $17,056 Additional information: Dividends on common shares in the amount of $11,400 were declared and paid during 2023. Depreciation expense of $22,500 is included in operating expenses.

Equipment with a cost of $21,000 that was 70% depreciated was sold during 2023. (a) Prepare a statement of cash flows using the direct method.