Marin's Custom Clothing (MCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. MARIN'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 2019 Cash 161,000 79,400 Accounts receivable 30,000 24,400 Inventory 70.000 43,700 Prepaid expenses 9.700 3.100 Total current assets 270.700 150,600 Property and equipment Property and equipment 98,000 143,000 Less: Accumulated depreciation 51,700 73.900 Net property and equipment 46,300 69,100 TOTAL ASSETS $317.000 $219,700 Property and equipment Property and equipment 98,000 143,000 Less: Accumulated depreciation 51,700 73,900 Net property and equipment 46,300 69,100 TOTAL ASSETS $317,000 $219,700 Current liabilities Accounts payable 23,800 30,400 Salaries payable 9,000 4,900 Interest payable 5.100 7,700 Total current liabilities 37,900 43,000 Loan payable 123.000 94.000 Total liabilities 160,900 137.000 Shareholders' equity Common shares 20,100 1.400 Retained earnings 136,000 81.300 Total shareholders' equity 156,100 82.700 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $317.000 $219.700 MARIN'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 887,000 764,000 Cost of sales 618,000 554,000 Gross margin 269,000 210,000 Expenses Salary expense 114,000 110,000 Interest expense 4,900 2,000 Other expenses 7,700 6,000 Depreciation expense 9,000 11.400 Total expenses 135,600 129.400 Operating income 133,400 80.600 Loss disposal of equipment 8.800 900 Income tax expense 33.350 17,600 Net income 91.250 62.100 Following is additional information concerning MCC's transactions during the year ended December 31, 2020: . Equipment costing $33,000 was purchased by paying $26,000 cash and issuing 400 common shares. Equipment costing $78,000 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 valu $0. . . The other expenses relate to prepaid items. In order to supplement its cash, MCC increased its bank loan by $29,000. Cash dividends of $36,550 were paid at the end of the fiscal year. Cost of sales includes $167.000 of direct labour costs. Prepare a statement of cash flows for MCC for the year ended December 31, 2020, using the indirect method. MCC follows ASPE.(Show amounts that decrease cash flow with either a - signe.g. - 15,000 or in parenthesis e.g. (15,000).) MARIN'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS + $ Add/(Deduct) non-cash items: Cash Paid for Purchase of Equipment Decrease in Accounts Payable Decrease in Accounts Receivable Decrease in Bank Loan Payable Decrease in Interest Payable Decrease in Inventory Decrease in Prepaid Expenses Decrease in Salaries Payable Depreciation Expense Gain on Disposal of Equipment Increase in Accounts Payable Increase in Accounts Receivable Increase in Bank Loan Payable Increase in interest Payable Increase in Inventory Increase in Prepaid Expenses Increase in Salaries Payable Issuance of Common Shares Loss on Disposal of Equipment Net Income/(Loss) Payment of Cash Dividends Proceeds from Sale of Equipment