Riverbed Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: RIVERBED INC. Comparative Statement of Financial Position December 31 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation equipment Goodwill Total assets 2020 $49,745 58,100 40,110 5,310 160,820 (35,310) 24,000 $302,775 2019 $25,120 51,200 60,130 4,180 130,080 (25,180) 58,000 $303,530 Accounts payable Income tax payable Salaries and wages payable Short-term loans payable Long-term loans payable Common shares Retained earnings Total liabilities and shareholders' equity $46,220 4,110 8,120 8,100 64,000 130,000 42,225 $302,775 $40,080 6,130 4,120 10,200 77,000 130,000 36,000 303,530 RIVERBED INC. Income Statement Year Ending December 31, 2020 Sales revenue Cost of goods sold Gross margin Operating expenses Operating income Interest expense Impairment loss-goodwill Gain on disposal of equipment Income before income tax Income tax expense Net income $342,035 165,000 177,035 120,000 57,035 $11,700 34,000 (2,400) 43,300 13,735 4,110 $9,625 Additional information: 1. 2. Dividends on common shares in the amount of $3,400 were declared and paid during 2020. Dividends paid are treated as fin Depreciation expense is included in operating expenses, as is salaries and wages expense of $74,500. Equipment with a cost of $40,000 that was 70% depreciated was sold during 2020. 3. Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a-sign e.g.-10,000 or in parenthesis e.g. (10,000).) Riverbed Inc. Statement of Cash Flows (Direct Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers 7 S