Prepare the operating section only of the Statement of Cash Flows using the indirect method for the year ended December 31, 2020.

The following additional information pertains to AIs activities in 2020.

• AI purchased an asset worth 245,000 on 12/31/2020.

• AI purchased one new machine in 2020 (there were no sales).

The income statement for 2020 is as follows:

Sales revenue $1,980,000

Cost of Goods Sold 1,089,000

Gross profit 891,000

Other operating expenses 690,000

Net income $ 201,000

Comparative balance sheets for 2019 and 2020:

	2020	2019
Cash	$282,000	$153,000
Accounts receivable, net	139,000	117,000
Inventory	150,000	180,000
Prepaid insurance expense	18,000	27,000
Equipment	1,295,000	1,050,000
Accumulated depreciation	-450,000	-375,000
Patent	153,000	174,000
	$1,587,000	$1,326,000
Accounts payable	$153,000	$168,000
Accrued liabilities	60,000	42,000
Mortgage payable		450,000
Preferred stock	645,000
Common stock	600,000	600,000
Retained earnings	129,000	66,000
	$1,587,000	$1,326,000