Skysongs Custom Clothing (SCC) sells branded clothing to resorts and corporations. The companys comparative financial statements are presented below.

SKYSONGS CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31
Current Assets		2020		2019
Cash		150,000		78,500
Accounts receivable		29,000		25,000
Inventory		70,000		44,800
Prepaid expenses		10,400		2,900
Total current assets		259,400		151,200
Property and equipment
Property and equipment		99,000		143,000
Less: Accumulated depreciation		54,800		56,000
Net property and equipment		44,200		87,000
TOTAL ASSETS		$303,600		$238,200
Current liabilities
Accounts payable		25,700		30,400
Salaries payable		9,400		5,000
Interest payable		4,800		8,400
Total current liabilities		39,900		43,800
Loan payable		113,000		105,000
Total liabilities		152,900		148,800
Shareholders' equity
Common shares		21,000		1,600
Retained earnings		129,700		87,800
Total shareholders' equity		150,700		89,400
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$303,600		$238,200

SKYSONGS CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31
		2020		2019
Sales revenue		905,000		727,000
Cost of sales		667,000		542,000
Gross margin		238,000		185,000
Expenses
Salary expense		100,000		86,000
Interest expense		5,200		1,900
Other expenses		8,000		6,300
Depreciation expense		30,000		32,200
Total expenses		143,200		126,400
Operating income		94,800		58,600
Loss on disposal of equipment		7,800		900
Income tax expense		23,700		18,300
Net income		63,300		39,400

Following is additional information concerning SCCs transactions during the year ended December 31, 2020:

		Equipment costing $34,000 was purchased by paying $24,000 cash and issuing 400 common shares.
		Equipment costing $78,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $39,000. Straight-line depreciation had been used with an expected asset life of 5 years and a residual value of $0.
		The other expenses relate to prepaid items.
		In order to supplement its cash, SCC increased its bank loan by $8,000.
		Cash dividends of $21,400 were paid at the end of the fiscal year.
		Cost of sales includes $183,000 of direct labour costs.

Prepare a statement of cash flows for SCC 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 e.g. -15,000 or in parenthesis e.g. (15,000).)

Skysongs Custom Clothing Statement of Cash Flows

Non-cash investing and financing activities
Cash Paid for Purchase of EquipmentIncrease in Bank Loan PayableIssuance of Common Shares in Partial Payment for EquipmentPayment of DividendsIssuance of Common SharesCash Paid for TaxesCash Received from CustomersCash Paid to EmployeesCash Paid to SuppliersProceeds from Sale of EquipmentCash Paid for Interest				$