The comparative balance sheets and income statement of Worsley Ltd. are shown below. WORSLEY LTD. Statement of Financial Position as at December 31 2019 2018 Current assets Cash Accounts receivable Inventory Prepaid expenses $ 137,000 371,000 460,000 26,000 994,000 2,836,000 (1,121,000) 1,715,000 $ 2,709,000 $ 116,000 364,000 486,000 17,000 983,000 2,445,000 (1,034,000) 1,411,000 $ 2,394,000 Capital assets Accumulated amortization Current liabilities Accounts payable Unearned revenues Interest payable Income taxes payable Dividends payable $ 436,000 56,000 104,000 31,000 35,000 662,000 800,000 400,000 1,200,000 $ 492,000 78,000 99,000 35,000 23,000 727,000 1,000,000 250,000 1,250,000 Bonds payable Mortgage payable Shareholders' equity Common shares Retained earnings 500,000 347,000 847,000 $ 2,709,000 100,000 317,000 417,000 $ 2,394,000 WORSLEY LTD. Income Statement for the year ended December 31, 2019 Sales Cost of goods sold Amortization expense Operating expenses Interest expense Income tax expense Gain on repayment of bonds payable Loss on disposal of capital assets Net income $4,971,000 (4,112,000) (155,000) (471,000) (84,000) (36,000) 3,000 (4,000) $ 112,000 Additional information 1. On January 10, 2019, Worsley issued 10,000 common shares for capital assets. The common shares had a current market value of approximately $75,000. 2. On March 16, 2019, Worsley sold a capital asset that cost $1 12,000. 3. On September 1, 2019, Worsley issued a 10% stock dividend to shareholders of record on August 15, 2019. This increased common shares and decreased retained earnings by $40,000. Required a. Prepare a cash flow statement for the year ending December 31, 2019. Use the indirect approach to report the operating activities. Prepare the cash flow from operations using the direct approach. b