Comparative statements of financial position and income statement for Brighton Ltd. are shown below: Burgundy adheres to IFRS and classifies interest paid as operating cash flow and dividends paid as financing cash flow.

Additional information concerning transactions and events during 2020:

1. Purchased machinery costing $ 81,500, paid $21,500 cash and issued a $ 60,000 long-term note payable for the balance. There was no other purchases or sales of property, plant & equipment.
2. Accounts payable was related to purchase of inventory only.
3. Depreciation expense was included in the operating expense.
4. Cash dividends of $54,000 were declared and paid.

1. Prepare a statement of cash flows using the indirect method for 2020.
2. Show any disclosures that were required for the statement of cash flows.

The condensed comparative statement of financial positions: Cash..... Accounts receivable (net)... Inventory........... Property, plant & equipment. Accumulated depreciation........ Total Assets _December 31__ 2020 2019 $ 40,900 $ 10,200 28,300 20,300 45,000 42,000 246,500 165,000 _(57,700) (25,000) $ 303,000 $212,500 Accounts payable. Tax payable... Long-term notes payable.. Common shares... Retained earnings......... Total Liabilities & Shareholders' Equity $ 19,000 $ 26,500 19,000 17,000 110,000 50,000 100,000 90,000 55,000 29,000 $ 303,000 $212,500 The condensed income statement for 2020: Sales........ Cost of goods sold.. Operating expenses... Interest expense Income tax expense. Net income...... $ 660,000 363,000 168,000 9,000 40,000 $ 80,000