Flints Custom Clothing (FCC) sells branded clothing to resorts and corporations. The companys comparative financial statements are presented below.

Following is additional information concerning FCCs transactions during the year ended December 31, 2020:

		Equipment costing $34,000 was purchased by paying $23,000 cash and issuing 400 common shares.
		Equipment costing $74,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $41,000. Straight-line depreciation had been used with an expected asset life of 5 years and a residual value of $0.
		The other expenses relate to prepaid items.
		In order to supplement its cash, FCC increased its bank loan by $8,000.
		Cash dividends of $28,050 were paid at the end of the fiscal year.
		Cost of sales includes $166,000 of direct labour costs.

Prepare a statement of cash flows for FCC for the year ended December 31, 2020, using the direct method. CCC follows ASPE.Include any note disclosure on non-cash financing and investing transactions. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

FLINT'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 2019 Cash 132,000 32,000 68,000 9,900 241,900 80,300 26,000 43,200 3,000 152,500 102,000 53,100 48,900 $290,800 142,000 51,700 90,300 $242,800 Accounts receivable Inventory Prepaid expenses Total current assets Property and equipment Property and equipment Less: Accumulated depreciation Net property and equipment TOTAL ASSETS Current liabilities Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 32,900 5,300 7,900 24,800 8,600 5,000 38,400 115,000 153,400 46,100 107,000 153,100 19,900 117,500 1,500 88,200 89,700 137,400 $290,800 $242,800 FLINT'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 873,000 649,000 224,000 755,000 528,000 227,000 Cost of sales Gross margin Expenses Salary expense Interest expense Other expenses Depreciation expense Total expenses Operating income Loss on disposal of equipment Income tax expense Net income 99,000 5,200 7,800 31,000 143,000 81,000 3,400 20,250 89,000 1,900 5,800 32,300 129,000 98,000 900 17,900 79,200 57,350 Flint's Custom Clothing Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers $ 867000 Cash Paid to Suppliers -515900 Cash Paid to Employees -261700 Cash Paid for Interest A -8100 Cash Paid for Taxes -20250 Net Cash Provided by Operating Activities - 6105 Cash Flows from Investing Activities Cash Paid for Purchase of Equipment a -23000 Proceeds from Sale of Equipment 41000 Net Cash Provided by Investing Activities - 1800 Cash Flows from Financing Activities Increase in Bank Loan Payable 7400 Payment of Dividends 8000 Issuance of Common Shares -28050 Net Cash Used by Financing Activities - 1265 Increase in Cash 6640 Opening Cash Balance 8030 Closing Cash Balance $ 14670