MTS Logistics Balance Sheet As at December 31, 2021 parative balance sheet and income statement for 20. 2021 2020 Cash $ 24,000 $ 3,000 Accounts receivable 27,000 23,000 Inventories 39,000 31,000 Prepaid expenses 6,000 3,000 Equipment (net) 95,000 79,000 Intangible assets 14,000 9,000 $205,000 $148,000 Accounts payable Accrued liabilities Income tax payable Long-term debt Share capital Retained earnings $ 19,000 $9,000 21,000 19,000 19,000 12,000 52,000 50,000 27,000 18,000 67,000 40,000 $205,000 $148,000 MTS Logistics Income Statement As at December 31, 2021 2021 2020 Sales revenue Gain on sale of equipment Total revenue and gains Cost of goods sold Depreciation expense Other operating expense Total expenses $ 190,000 $165,000 6,000 184,000 165,000 85,000 70,000 19,000 17,000 36,000 33,000 140,000 120,000 Income before income tax 56,000 45,000 Income tax expense Net income Required: Prepare a statement of cash flows in the direct method 18,000 15,000 $ 38,000 $ 30,000