Sale ABC Manufacturing Inc. Income Statement Year Ended December 31, 20X4 $200,000 $120,000 Cost of goods sold Gross Profit $ 80,000 Operating Expenses $40,000 Loss on Sale of equipment $ 2,000 $ 42,000 Profit from Operations Other expenses Interest Expense Profit before Income Tax Income Tax Expense Profit $ 38,000 $ 2,000 $ 36,000 $ 8,000 $ 28,000 ABC Manufacturing Inc. comparative balance sheet at December 31 Inventory Cash Accounts Receivable Prepaid Expenses Equipment Accumulated Depreciation equipment Total Assets Account Payable Interest Payable Income taxes payable Dividends Payable Long-term Notes Payable Common shares Retained Earnings Total Liabilities & Shareholders' Equity 20X4 20X3 $ 4,500 $ 4,300 $ 72,000 $ 6,500 $110,000 $ 1,550 $ 98,000 $(50,000) $236,050 $ 15,330 $ 510 $ 10,800 $ 1,800 $ 50,000 $130,000 $ 27,610 $236,050 $140,000 $ 1,020 $100,000 $(42,000) $209,820 $ 9,900 10 $ 9,500 $ 3,800 $ 65,000 $120,000 $ 1,610 $209,820 Additional Information: 1. Operating expenses Include depreciation expense of $10,000 2. Accounts Payable related to the purchase of Inventory 3. Equipment that cost $8,000 was sold at a loss of $2,000 4. New equipment was purchased during the year for $6,000 5. Dividends declared and paid in 20X4 totaled $2,000 6. Common shares were sold for $10,000 cash 7. Interest payable in 20X4 was $500 greater than Interest payable in 20X3 What where the proceeds of the sale of the machinery when the Indirect method to prepare cash flow statements is use?