Prepare a cash flow statement for the year ending December 31, 2020. Use the indirect method to report the operating activities.

The comparative balance sheets of Ziralo Inc. are shown below: Balance Sheet December 31 Cash Accounts receivable Inventory Capital assets Accumulated amortization Capital assets-net Total assets 2019 $ 430,000 820,000 975,000 5,200,000 (3,825,000) 1,375,000 S 3,600,000 2020 $ 300,000 900,000 1,100,000 5,800,000 (4,025,000) 1,775,000 $ 4,075,000 (130,000) 80,000 125,000 600,000 (200,000) 400,000 S 955,000 145,000 Accounts payable Accrued liabilities Dividend Payable Bonds payable Mortgage payable Common stocks Retained earnings Total liabilities and stockholders' equity 1,300,000 500,000 450,000 250,000 S 3,600,000 $ 900,000 152,000 8,000 1,000,000 800,000 740,000 475,000 $ 4,075,000 (55,000) 7,000 8,000 (300,000) 300,000 290,000 225,000 Additional information: 1. On April 30, 2020, Ziralo sold capital assets that cost $140,000, with a book value of $90,000, for $85,000. 2. On July 1, 2020, Ziralo issued a stock dividend valued at $40,000 to shareholders of record on June 20, 2020. 3. On July 15, 2020, Ziralo issued common stock for capital assets. The common stocks had a current market value of approximately $50,000. 4. On September 10, 2020, bonds with a net book value of $300,000 were retired for $297,000. 5. On December 1, 2020, Kiralo declared cash dividends of $20,000