Digiread Technologies Ltd. (DTL) is a privately held distributor of e-readers and tablets. The Calgary-based company is well established and is currently managed by its founder, Erin Jacobs. The companys financial statements are presented below, together with some additional information.

DIGIREAD TECHNOLOGIES LTD. Statement of Income For the Year Ended December 31, 2020
Sales revenue		$60,600,000
Cost of goods sold		41,280,000
Gross profit		19,320,000
Wages expense		4,800,000
Depreciation expense		1,440,000
Interest expense		2,280,000
Income tax expense		1,920,000
Gain on sale of equipment		(720,000)
Net income		$9,600,000

DIGIREAD TECHNOLOGIES LTD. Statement of Financial Position As at December 31
		2020		2019
Assets
Current assets:
Cash		$18,600,000		$10,200,000
Accounts receivable (net)		13,800,000		18,600,000
Inventory		20,280,000		22,800,000
Total current assets		52,680,000		51,600,000
Equipment		47,280,000		36,000,000
Accumulated depreciation, equipment		(7,920,000	)	(7,680,000	)
Total Assets		$92,040,000		$79,920,000
Liabilities and shareholders equity
Current liabilities:
Accounts payable		$14,280,000		$8,400,000
Wages payable		1,440,000		1,200,000
Total current liabilities		15,720,000		9,600,000
Bonds payable		25,200,000		31,200,000
Common shares		16,800,000		10,800,000
Retained earnings		34,320,000		28,320,000
Total liabilities and shareholders equity		$92,040,000		$79,920,000

DIGIREAD TECHNOLOGIES LTD. Other Selected Financial Information for the Year Ended December 31, 2020
1.		Total sales in 2020 were consistent with the prior years, and the companys dividend policy has remained consistent for the past five years.
2.		During 2020, DTL sold a piece of equipment for $2,520,000. The equipment had originally cost $3,000,000 and had a net carrying amount of $1,800,000 at the time of sale.
3.		On August 1, 2020, DTLs board of directors approved the retirement of bonds with a carrying amount $6,000,000 through the issuance of common shares.

(a1) DTLs management shareholders have asked you to prepare the statement of cash flows for DTL using indirect method for determining cash flows from operating activities. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

DIGIREAD TECHNOLOGIES LTD. Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income $ 9,600,000 Depreciation Expense 1,440,000 Gain on Sale of Equipment (720,000) Decrease in Accounts Receivable 4,800,000 Decrease in Inventories 2,520,000 Increase in Accounts Payable 5,880,000 Increase in Wages Payable 240,000 Net Cash Provided by Operating Activities 23,760,000 Cash Flows from Investing Activities Proceeds from the sale of Equipment 2,520,000 Purchase of Equipment (14,280,000) Net Cash Provided by Investing Activities (11,760,000) Cash Flows from Financing Activities Dividend Paid 3,600,000 3,600,000 Net Cash Provided by Financing Activities Net Change in Cash $ 8,400,000 Net Change in Cash $ 8,400,000 Opening Cash 10,200,000 Ending Cash 18,600,000 Supplemental Cash Flow information: Cash paid for interest $ 2,280,000 Cash paid for income tax $ 1,920,000 Non-cash investing and financing activities: During the year, the company's board of directors approved the retirement of bonds with a carrying amount of $ 6,000,000 through the issuance of common shares