E177 Innisfil Ice Hunt Rentals Inc. reported a net cash flow from operating activities of $40,625 on its cash flow statement for the year ended December 31, 2020. The following information was reported in the Cash Flows from Operating Activities section of the cash flow statement, which uses the indirect method: Decrease in legal fees payable Increase in prepaid expenses Amortization Loss on sale of equipment Increase in accounts payable Decrease in inventory Increase in trade accounts receivable $1,000 400 3,350 1,500 600 2,175 2,000 Required Determine the net income reported by Innisfil Ice Hunt Rentals Inc. for the year ended December 31, 2020. Hint: complete the operating section of the cash flow statement and then solve for net income. 3 Computing net income using cash flows from operating activities, indirect method