Pronghorn's Custom Clothing (PCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. PRONGHORN'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 Current Assets 2020 2019 Cash 161,000 77,600 Accounts receivable 32,000 24,200 Inventory 71,000 46,800 Prepaid expenses 9,700 3,100 Total current assets 273,700 151,700 Property and equipment Property and equipment Property and equipment 96,000 139,000 Less: Accumulated depreciation 54,300 75,700 Net property and equipment 41,700 63,300 TOTAL ASSETS $315,400 $215,000 Current liabilities Accounts payable 26,200 31,700 Salaries payable 8,700 4,800 Interest payable 4,900 8,000 Total current liabilities 39,800 44,500 Loan payable 123,000 91,000 Total liabilities 162,800 135,500 Shareholders' equity Common shares 20,900 1,400 Retained earnings 131,700 78,100 Total shareholders' equity 152,600 79,500 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $315,400 $215,000 PRONGHORN'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 902,000 775,000 Cost of sales 623,000 565,000 Gross margin 279,000 210,000 Expenses Salary expense 125,000 114,000 Interest expense 5,200 2,000 Other expenses 8,200 6,000 Depreciation expense 9,000 12,100 Total expenses 147,400 134,100 Operating income 131,600 75,900 Loss disposal of equipment 6,600 1,000 Income tax expense 32,900 17,400 Net income 92,100 57,500 Following is additional information concerning PCC's transactions during the year ended December 31, 2020: . Equipment costing $33,000 was purchased by paying $25,000 cash and issuing 400 common shares. Equipment costing $76,000 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, PCC increased its bank loan by $32,000. Cash dividends of $38,500 were paid at the end of the fiscal year. Cost of sales includes $182,000 of direct labour costs. Prepare a statement of cash flows for PCC for the year ended December 31, 2020, using the indirect method. PCC follows ASPE. (Show amounts that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) PRONGHORN'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS Add/(Deduct) non-cash items: CA > > >