Flounder Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020:

FLOUNDER INC. Comparative Statement of Financial Position December 31
			2020			2019
Cash			$ 52,735			$ 25,050
Accounts receivable			58,040			51,080
Inventory			40,050			60,060
Prepaid rent			5,240			4,120
Equipment			156,690			130,100
Accumulated depreciation–equipment			( 35,240	)		( 25,120	)
Goodwill			18,000			58,000
	Total assets		$ 295,515			$ 303,290
Accounts payable			$ 46,290			$ 40,100
Income tax payable			4,050			6,060
Salaries and wages payable			8,050			4,050
Short–term loans payable			8,040			10,080
Long–term loans payable			58,000			77,000
Common shares			130,000			130,000
Retained earnings			41,085			36,000
	Total liabilities and shareholders’ equity		$ 295,515			303,290

FLOUNDER INC. Income Statement Year Ending December 31, 2020
Sales revenue					$ 347,925
Cost of goods sold					165,000
Gross margin					182,925
Operating expenses					120,000
Operating income					62,925
Interest expense		$ 12,200
Impairment loss–goodwill		40,000
Gain on disposal of equipment		( 3,100	)		49,100
Income before income tax					13,825
Income tax expense					4,140
Net income					$ 9,685

Additional information:

1.		Dividends on common shares in the amount of $ 4,600 were declared and paid during 2020. Dividends paid are treated as financing activities.
2.		Depreciation expense is included in operating expenses, as is salaries and wages expense of $ 73,500.
3.		Equipment with a cost of $ 36,000 that was 70% depreciated was sold during 2020.

Prepare a statement of cash flows using the direct method.