BrambleInc. is a major retailer of road bicycles and a promoter of riding bicycles to work, both to save the environment and improve physical fitness. Financial statements forBrambleare presented below.

STATEMENT OF FINANCIAL POSITION

December 31

Current Assets20212020Cash55,95020,250 Accounts receivable25,50010,850 Inventory30,90015,900 Prepaid expenses15,50010,500 Total current assets127,85057,500

Property and EquipmentProperty and equipment160,900150,900Less: Accumulated depreciation

78,90070,000Net property and equipment82,00080,900

TOTAL ASSETS$209,850$138,400

Current LiabilitiesAccounts payable11,55015,450Salaries payable10,5008,500Interest payable2,8503,850Total current liabilities24,90027,800Loan payable100,90060,900Total Liabilities125,80088,700Shareholders' EquityCommon shares9,900450Retained earnings74,15049,250Total shareholders' equity84,05049,700

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$209,850$138,400

INCOME STATEMENT

For the Years Ended December 31

20212020Sales revenue608,050500,000Cost of sales414,000350,000Gross margin194,050150,000ExpensesSalary expense136,000125,000Interest expense3,5002,400Other expenses6,0003,000Depreciation expense14,9008,000Total expenses160,400138,400Operating income33,65011,600Gain on disposal of equipment1,950-Income tax expense6,4001,972Net income$29,200$9,628

The following is additional information concerningBramble's transactions during the year ended December 31, 2021:

Equipment costing $40,000was purchased by paying $35,050cash and issuing100shares.

Equipment costing $30,000that was purchased at the beginning of 2020 was sold at the end of 2021 for $25,950. Straight-line depreciation had been used with an expected asset life of10years and a residual value of $0.

The "other expenses" relate to prepaid items.

In order to supplement its cash,Brambleborrowed an additional $40,000and issued an additional100shares.

Cash dividends of $4,300were paid at the end of the fiscal year.Cost of sales includes $140,000of direct labour costs.

Prepare statement of cash flows forBramblefor the year ended December 31, 2021, using the indirect method.Bramblefollows ASPE.Include any note disclosure on non-cash financing and investing transactions.(