Pronghorn Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020:

PRONGHORN INC. Comparative Statement of Financial Position December 31
			2020			2019
Cash			$45,700			$25,050
Accounts receivable			57,970			51,110
Inventory			39,940			60,100
Prepaid rent			5,210			4,010
Equipment			165,200			130,030
Accumulated depreciationequipment			(35,210	)		(25,010	)
Goodwill			16,000			54,000
	Total assets		$294,810			$299,290
Accounts payable			$46,200			$40,030
Income tax payable			3,940			6,100
Salaries and wages payable			8,050			4,050
Shortterm loans payable			7,970			10,110
Longterm loans payable			56,000			73,000
Common shares			130,000			130,000
Retained earnings			42,650			36,000
	Total liabilities and shareholders equity		$294,810			299,290

PRONGHORN INC. Income Statement Year Ending December 31, 2020
Sales revenue					$346,075
Cost of goods sold					165,000
Gross margin					181,075
Operating expenses					120,000
Operating income					61,075
Interest expense		$11,500
Impairment lossgoodwill		38,000
Gain on disposal of equipment		(2,200	)		47,300
Income before income tax					13,775
Income tax expense					4,125
Net income					$9,650

Additional information:

1.		Dividends on common shares in the amount of $3,000 were declared and paid during 2020. Dividends paid are treated as financing activities.
2.		Depreciation expense is included in operating expenses, as is salaries and wages expense of $69,500.
3.		Equipment with a cost of $22,000 that was 70% depreciated was sold during 2020.

a) Prepare a statement of cash flows using the indirect method.