Teal's Custom Clothing (TCC) sells branded clothing to resorts and corporations. The company's comparative financial statements are presented below. TEAL'S CUSTOM CLOTHING STATEMENT OF FINANCIAL POSITION December 31 2020 Current Assets 2019 Cash 157,000 Accounts receivable 31,000 71,000 9,700 79,400 25,300 42,800 3,100 150,600 268,700 Inventory Prepaid expenses Total current assets Property and equipment Property and equipment Less: Accumulated depreciation Net property and equipment TOTAL ASSETS 106,000 58,400 142,000 78,200 63,800 $214,400 47,600 $316,300 33,600 24,800 8,500 5,100 5,000 8,100 38,300 117,000 Current liabilities Accounts payable Salaries payable Interest payable Total current liabilities Loan payable Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 46,800 89,000 135,800 155,300 19,600 141,400 161,000 $316,300 1,500 77,100 78,600 $214,400 TEAL'S CUSTOM CLOTHING INCOME STATEMENT For the Years Ended December 31 2020 2019 Sales revenue 921,000 783,000 Cost of sales 650,000 523,000 Gross margin 271,000 260,000 Expenses Salary expense 126,000 105,000 Interest expense 5,000 2,000 Other expenses 7,700 6,300 Depreciation expense 9,000 12,200 Total expenses 147,700 125,500 Operating income 123,300 134,500 Loss disposal of equipment 5,200 1,100 Income tax expense 30.825 18,400 Net income 87,275 115,000 Following is additional information concerning TCC's transactions during the year ended December 31, 2020: Equipment costing $36,000 was purchased by paying $24,000 cash and issuing 400 common shares. Equipment costing $72,000 that was purchased at the beginning of 2019 was sold at the end of 2020 for $38,000. 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, TCC increased its bank loan by $28,000. Cash dividends of $22,975 were paid at the end of the fiscal year. Cost of sales includes $170,000 of direct labour costs. Prepare a statement of cash flows for TCC for the year ended December 31, 2020, using the indirect method. TCC follows ASPE. (Show amounts that decrease cash flow with either a-sign e.g.-15,000 or in parenthesis e.g. (15,000).) TEAL'S CUSTOM CLOTHING STATEMENT OF CASH FLOWS $ Add/(Deduct) non-cash items