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 As at December 31, 2016
Sales		$47,470,000
Cost of goods sold		32,336,000
Gross profit		15,134,000
Wage expense		3,760,000
Depreciation expense		1,128,000
Interest expense		1,786,000
Income tax expense		1,504,000
Net income from operations		6,956,000
Gain on sale of equipment		564,000
Net income		$7,520,000

DIGIREAD TECHNOLOGIES LTD. Statement of Financial Position As at December 31
		2016		2015
Assets
Current assets:
Cash		$14,570,000		$7,990,000
Accounts receivable (net)		10,810,000		14,570,000
Inventory		15,886,000		17,860,000
Total current assets		41,266,000		40,420,000
Equipment		37,036,000		28,200,000
Accumulated depreciation, equipment		(6,204,000	)	(6,016,000	)
Total Assets		$72,098,000		$62,604,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable		$11,186,000		$6,580,000
Wages payable		1,128,000		940,000
Total current liabilities		12,314,000		7,520,000
Bonds payable		19,740,000		24,440,000
Common shares		13,160,000		8,460,000
Retained earnings		26,884,000		22,184,000
Total Liabilities and Shareholders' Equity		$72,098,000		$62,604,000

DIGIREAD TECHNOLOGIES LTD. Other Selected Financial Information for the Year Ended December 31, 2016
1.		Total sales in 2016 were consistent with the prior years and the companys dividend policy has remained consistent for the past five years.
2.		During 2016, DTL sold a piece of equipment for $1,974,000. The equipment had originally cost $2,350,000 and had a net carrying amount of $1,410,000 at the time of sale.
3.		On August 1, 2016, DTLs board of directors approved the retirement of bonds with a face value of $4,700,000 through the issuance of common shares.

Prepare a statement of cash flows using the direct method.