Gold Company uses the indirect method to prepare its statement of cash flows. Please refer to the following information for the year 2020.

Gold Company

Balance Sheet

December 31, 2020

	2020	2019	Change
Cash	$ 11,500	$ 9,000	$ 2,500
Accounts receivable	15,500	17,000	(1,500)
Inventory	27,500	31,000	(3,500)
Property, Plant & Equipment (net)	60,000	45,000	15,000
Total assets	$ 114,500	$ 102,000	$ 12,500
Accounts payable	2,000	3,000	(1,000)
Accrued liabilities	1,000	750	250
Long-term notes payable	42,000	38,000	4,000
Total liabilities	$ 45,000	$ 41,750	$ 3,250
Common shares	21,000	8,500	12,500
Retained earnings	48,500	51,750	(3,250)
Total equity	$ 69,500	$ 60,250	$ 9,250
Total liabilities and equity	$ 114,500	$60,250	$ 12,500

Question 1 (cont)

Gold Company

Income Statement

For the Year Ended December 31, 2020

Revenues and gains:
Sales revenue	$ 120,000
Interest revenue	500
Gain on sale of plant assets	2,000
Total revenues		$ 122,500
Expenses:
Cost of goods sold	$ 55,000
Salary expense	22,500
Depreciation expense	6,000
Other operating expenses	11,500
Interest expense	500
Income tax expense	2,500
Total expenses		98,000
Net income		$ 24,500

Gold Company

Statement of Retained Earnings

For the Year Ended December 31, 2020

Retained earnings, January 1, 2020	$ 27,000
Net income	24,500
Dividends	(5,000)
Retained earnings, December 31, 2020	$ 46,500

Additional information provided:

Equipment costing $27,000 was purchased for cash.

Equipment with a net asset value of $5,000 was sold for $7,000

During 2020, the company repaid $20,000 of long-term notes payable.

During 2020, the company borrowed $17,000 on a new note payable

• During 2020, the company sold common shares for $12,500
• The company traded common shares for a building valued at $75,000

Prepare a statement of cash flows in good form assuming that Avatar Company uses the indirect method including any noncash investing and financing activities