Ivanhoes Custom Clothing (ICC) sells branded clothing to resorts and corporations. The companys comparative financial statements are presented below. IVANHOES CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 2019 Cash 150,000 79,200 Accounts receivable 29,000 24,300 Inventory 71,000 44,900 Prepaid expenses 9,600 2,900 Total current assets 259,600 151,300 Property and equipment Property and equipment 106,000 146,000 Less: Accumulated depreciation 53,500 54,500 Net property and equipment 52,500 91,500 TOTAL ASSETS $312,100 $242,800 Current liabilities Accounts payable 24,300 32,800 Salaries payable 8,600 5,100 Interest payable 4,800 7,800 Total current liabilities 37,700 45,700 Loan payable 122,000 113,000 Total liabilities 159,700 158,700 Shareholders' equity Common shares 20,800 1,600 Retained earnings 131,600 82,500 Total shareholders' equity 152,400 84,100 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $312,100 $242,800 IVANHOES CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 921,000 755,000 Cost of sales 663,000 537,000 Gross margin 258,000 218,000 Expenses Salary expense 95,000 85,000 Interest expense 5,100 2,100 Other expenses 8,200 5,900 Depreciation expense 29,000 32,200 Total expenses 137,300 125,200 Operating income 120,700 92,800 Loss on disposal of equipment 7,000 1,000 Income tax expense 30,175 17,400 Net income 83,525 74,400 Following is additional information concerning ICCs transactions during the year ended December 31, 2020: Equipment costing $35,000 was purchased by paying $25,000 cash and issuing 400 common shares. Equipment costing $75,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $38,000. 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, ICC increased its bank loan by $9,000. Cash dividends of $34,425 were paid at the end of the fiscal year. Cost of sales includes $172,000 of direct labour costs. Prepare a statement of cash flows for ICC 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.