Cheyenne Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: CHEYENNE INC. Comparative Statement of Financial Position December 31 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation equipment Goodwill Total assets 2020 $51,830 57,890 39,970 5,280 158,080 (35,280) 14,000 $291,770 2019 $25,130 51,090 60,050 4,090 130,200 (25.090) 52,000 $297,470 Accounts payable Income tax payable Salaries and wages payable Short-term loans payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $46.280 3,970 8,130 7,890 54,000 130,000 41,500 $291,770 $40,200 6,050 4,130 10,090 71,000 130,000 36,000 297,470 CHEYENNE 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 $346,170 165,000 181,170 120,000 61,170 $12,300 38,000 (3,000) 47,300 13,870 4,170 $9,700 Additional information: 1 2. Dividends on common shares in the amount of $4,200 were declared and paid during 2020. Depreciation expense is included in operating expenses, as is salaries and wages expense of $73,500. Equipment with a cost of $34.000 that was 70% depreciated was sold during 2020. 3. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign eg. -10,000 or in parenthesis eg. (10,000).) Cheyenne Inc Statement of Cash Flows (Direct Method) $ > $