Problem 3

The comparative balance sheets for Hamilton Inc. appear below:

Additional information:

1. Net income for the year ending December 31, 2020 were $27,000.

2. Cash dividends of $13,000 were declared and paid during the year ended December 31 2020.

3. Long-term investments that had a carrying amount of $23,000 were sold for $18,000 in 2020.

Prepare only the cash flow from operating activities for the year ended Dec 31, 2020 using the indirect method.