Novak's Custom Clothing (NCC) sells branded clothing to resorts and corporations. The companys comparative financial statements are presented below. 2019 77.400 24,200 44,200 3.100 148.900 NOVAK'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 Cash 150,000 Accounts receivable 32.000 Inventory 67,000 Prepaid expenses 10.200 Total current assets 259,200 Property and equipment Property and equipment 99,000 Less: Accumulated depreciation 52,600 Net property and equipment 46,400 TOTAL ASSETS $305,600 Current liabilities Accounts payable 23,800 Salaries payable 9,200 Interest payable 4,700 Total current liabilities 37.700 Loan payable 118,000 144,000 75,200 68.800 $217,700 30.600 5,300 8,400 44.300 89,000 118.000 155,700 89,000 133,300 Loan payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 20,400 129,500 149,900 $305,600 1,500 82.900 84,400 $217.700 NOVAK'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 878,000 753,000 Cost of sales 631.000 532,000 Gross margin 247,000 221,000 Expenses Salary expense 119,000 108,000 Interest expense 5,200 2,000 Other expenses 8,000 5,900 Depreciation expense 9.000 12,200 Total expenses 141.200 128,100 Operating income 105,800 92.900 Operating income Loss disposal of equipment Income tax expense Net income 105,800 5,400 26,450 73,950 92,900 1,100 18.900 72,900 Following is additional information concerning NCC's transactions during the year ended December 31, 2020: . . Equipment costing $34,000 was purchased by paying $23.000 cash and issuing 400 common shares. Equipment costing $79,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $42.000. 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, NCC increased its bank loan by $29.000 Cash dividends of $27,350 were paid at the end of the fiscal year. Cost of sales includes $168,000 of direct labour costs. Prepare a statement of cash flows for NCC for the year ended December 31, 2020, using the indirect method. NCC follows ASPE (Show amounts that decrease cash flow with either a sign e.g. -15,000 or in parenthesis e.3. (15,000).) NOVAK'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020