Bridgeport's Custom Clothing (BCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below.

BRIDGEPORT'S CUSTOM CLOTHING

STATEMENT OF FINANCIAL POSITION

December 31

Current Assets 2020 2019

Cash 161,000 79,400

Accounts receivable 30,000 24,400

Inventory 70,000 43,700

Prepaid expenses 9,700 3,100

Total current assets 270,700 150,600

Property and equipment

Property and equipment 98,000 143,000

Less: Accumulated depreciation 51,700 73,900

Net property and equipment 46,300 69,100

TOTAL ASSETS $317,000 $219,700

Current liabilities

Accounts payable 23,800 30,400

Salaries payable 9,000 4,900

Interest payable 5,100 7,700

Total current liabilities 37,900 43,000

Loan payable 123,000 94,000

Total liabilities 160,900 137,000

Shareholders' equity

Common shares 20,100 1,400

Retained earnings 136,000 81,300

Total shareholders' equity 156,100 82,700

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY $317,000 $219,700

BRIDGEPORT'S CUSTOM CLOTHING

INCOME STATEMENT

For the Years Ended December 31

2020 2019

Sales revenue 887,000 764,000

Cost of sales 618,000 554,000

Gross margin 269,000 210,000

ExpensesSalary expense 114,000 110,000

Interest expense 4,900 2,000

Other expenses 7,700 6,000

Depreciation expense 9,000 11,400

Total expenses 135,600 129,400

Operating income 133,400 80,600

Loss disposal of equipment 8,800 900

Income tax expense 33,350 17,600

Net income 91,250 62,100

Following is additional information concerningBCC's transactions during the year ended December 31, 2020:

Equipment costing $33,000 was purchased by paying $26,000 cash and issuing 400 common shares.

Equipment costing $78,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $38,000. Straight-line depreciation had been used with an expected asset life of 5 years and a residual value of $0.

The "other expenses" relate to prepaid items.

In order to supplement its cash,BCC increased its bank loan by $29,000.

Cash dividends of $36,550 were paid at the end of the fiscal year.

Cost of sales includes $167,000 of direct labour costs.

Prepare statement of cash flows forBCC for the year ended December 31, 2020, using the indirect method.BCC follows ASPE.(Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)