Ivanhoe's Custom Clothing (ICC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. 2019 73,800 24,200 44,200 3,200 145,400 IVANHOE'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 Cash 157,000 Accounts receivable 30,000 Inventory 67,000 Prepaid expenses 10,200 Total current assets 264,200 Property and equipment Property and equipment 98,000 Less: Accumulated depreciation 54,500 Net property and equipment 43,500 TOTAL ASSETS $307,700 Current liabilities Accounts payable 25,200 Salaries payable 9,500 Interest payable 5,000 Total current liabilities 39,700 Loan payable 122,000 Total liabilities 161,700 Shareholders' equity Common shares 20,900 Retained earnings 125,100 Total shareholders' equity 146,000 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $307,700 135,000 72,300 62,700 $208,100 33,200 5,300 8,400 46,900 93,000 139,900 1,500 66,700 68,200 $208,100 IVANHOE'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 855,000 779,000 Cost of sales 652,000 564,000 Gross margin 203,000 215,000 Expenses Salary expense 83,000 107.000 Interest expense 5,100 1,900 Other expenses 8,200 6,300 Depreciation expense 11,000 11,800 Total expenses 107,300 127,000 Operating income 95,700 88,000 Loss disposal of equipment 3,200 1,000 Income tax expense 23,925 18,200 Net income 68,575 68,800 Following is additional information concerning ICC's transactions during the year ended December 31, 2020: Equipment costing $35,000 was purchased by paying $26,000 cash and issuing 400 common shares. Equipment costing $72,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $40,000. 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 $29,000. Cash dividends of $10,175 were paid at the end of the fiscal year. Cost of sales includes $175,000 of direct labour costs. . IVANHOE'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS $ Add/(Deduct) non-cash items: > >