Riverbed's Custom Clothing (RCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below.

RIVERBED'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 883,000 744,000 Cost of sales 623,000 558,000 Gross margin 260,000 186,000 Expenses Salary expense 103,000 88,000 Interest expense 4,900 2,100 Other expenses 7,900 6,200 Depreciation expense 31,000 32,400 Total expenses 146,800 128,700 Operating income 113.200 57,300 Loss on disposal of equipment 5,000 1,000 Income tax expense 28,300 17,300 Net income 79,900 39,000Prepare a statement of cash flows for RCC for the year ended December 31, 2020, using the direct method. CCC follows ASPE. Include any note disclosure on non-cash financing and investing transactions. (Show amounts that decrease cash flow with either a - sign eg. -15,000 or in parenthesis e.g. (15,000).) Riverbed's Custom Clothing Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers Cash Paid to Suppliers Cash Paid for Interest Cash Paid for Taxes Cash Paid to Employees Net Cash Provided by Operating Activities Cash Flows from Investing Activities Cash Paid for Purchase of Equipment Proceeds from Sale of Equipment Net Cash Provided by Investing Activities Cash Flows from Financing Activities Increase in Bank Loan Payable Payment of Dividends Issuance of Common Shares Increase in Cash Opening Cash Balance Closing Cash Balance Non-cash investing and financing activities Issuance of Common Shares in Partial Payment for Equipment v $RIVERBED'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION Decem her 3 1 Current Assets 2020 2019 Cash 15?,000 ?8,000 Accounts receivable 32,000 25,600 Inventoryr ?4,000 4?,100 Prepaid expenses 10,100 3,200 Total current assets 2?3,100 153,900 Property and equipment Property and equipment 101,000 141,000 Less: Accumulated depreciation 58,400 57,400 Net property and equipment 42,600 83,600 TOTAL ASSETS $315,?00 $237,500 Current liabilities Accounts payable 25,200 31,100 Salaries payable 8,600 4,800 Interest payable 5,100 8,200 Total current liabilities 38,900 44,100 Loan payable 125,000 114,000 Total liabilities 163,900 158,100 Sh are holders' eq uity Common shares 20,400 1,400 Retained earnings 131,400 ?8,000 Total shareholders' equity 151,800 ?9,400 TOTAL LIABILITIESANDSHAREHOLDERS' EQUITY $315300 $231500