Richmond Ltd. has the following financial statements and additional information as at December 31, 2020.

Richmond Ltd. Comparative Statements of Financial Position December 31, 2020 and 2019
	2020	2019
Cash	$105,800	$65,000
Accounts receivable, net	70,000	52,800
Inventory	107,000	96,000
Prepaid expenses	4,200	5,200
Equipment	130,000	120,000
Acc. Depreciation Equip.	(28,000)	(10,000)
Total assets	$389,000	$329,000
Accounts payable	$26,000	$32,000
Wages payable	17,000	16,000
Income tax payable	2,600	3,400
Notes payable (long term)	60,000	90,000
Share capital Ordinary, $5 par value	200,000	150,000
Retained earnings	83,400	37,600
Total liabilities & equity	$389,000	$329,000

Richmond Ltd. Income Statement for the year ended December 31, 2020
Sales	$850,000
Cost of goods sold	512,500
Gross profit	$337,500
Depreciation expense	58,600
General administrative and selling expenses	67,000
	211,900
Gain on sale of equipment	2,000
Profit before tax	$213,900
Income tax expense	54,100
Net profit	$159,800

Additional Information

1. A note payable is due and retired at its carrying amount $30,000 by cash.
2. The only changes affecting retained earnings are net profit and cash dividends paid. Cash dividends are classified as financing.
3. New equipment is acquired for $58,600 cash.
4. Received cash for the sale of equipment that had a cost of $48,600, yielding a $2,000 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of merchandise inventory are on credit.

Required:

Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. For amounts that need to be computed, show the calculations and label each as Note 1, Note 2, and so on, below the statement of cash flows.