Novak's Custom Clothing (NCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. 2019 78.500 25,000 44.800 2,900 151,200 NOVAK'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 Cash 150,000 Accounts receivable 29,000 Inventory 70,000 Prepaid expenses 10,400 Total current assets 259,400 Property and equipment Property and equipment 99.000 Less: Accumulated depreciation 54,800 Net property and equipment 44,200 TOTAL ASSETS $303,600 Current liabilities Accounts payable 25,700 Salaries payable 9,400 Interest payable 4.800 Total current liabilities 39,900 Loan payable 113,000 Total liabilities 152,900 Shareholders' equity Common shares 21,000 Retained earnings 129,700 143,000 76,000 67,000 $218,200 30,400 5,000 8.400 43,800 85,000 128,800 1,600 87,800 1.600 Shareholders' equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 21,000 129,700 150,700 $303,600 87,800 89,400 $218,200 NOVAK'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 905,000 727,000 Cost of sales 667,000 542.000 Gross margin 238,000 185,000 Expenses Salary expense 120,000 106,000 Interest expense 5,200 1,900 Other expenses 8,000 6,300 Depreciation expense 10,000 12,200 Total expenses 143,200 126,400 Operating income 94.800 58,600 Loss disposal of equipment 7,800 900 Income tax expense 23,700 18,300 Net income 63,300 39,400 Following is additional information concerning NCC's transactions during the year ended December 31, 2020: Equipment costing $34,000 was purchased by paying $24.000 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 $39,000. 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 $28,000. Cash dividends of $21,400 were paid at the end of the fiscal year. Cost of sales includes $183,000 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 eg. (15,000).) NOVAK'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS For the Year Ended December 31, 2020 $ Add/(Deduct) non-cash items: