Sheffield Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020: SHEFFIELD INC. Comparative Statement of Financial Position December 31 Cash Accounts receivable Inventory Prepaid rent Equipment Accumulated depreciation-equipment Goodwill Total assets 2020 $45,670 57,930 39,990 5,240 164,220 (35,240) 14,000 $291,810 2019 $25,060 51,010 60,150 4,110 130,040 (25.110 ) 54,000 $299,260 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 $46,120 3,990 8,060 7,930 54,000 130,000 41,710 $291,810 $40,040 6,150 4,060 10,010 73,000 130,000 36,000 299,260 SHEFFIELD 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 $347,785 165,000 182,785 120,000 62,785 $12,100 40,000 (3,100) 49,000 13,785 4,175 Net income $9,610 Additional information: 1. 2. 3. Dividends on common shares in the amount of $3,900 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 $71,000. Equipment with a cost of $40,000 that was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) Sheffield Inc. Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2020 Cash Flows from Operating Activities $ $ 9610 Net Income /(Loss) Adjustments to reconcile net income/loss to net cash provided by operating activities: Depreciation Expense $ $