The comparative statement of financial position for Clark Inc. as at December 31, 2020 and the statement of income for the year ended December 31, 2020 appear below: 2020 Cash Accounts receivable Inventory Land Equipment, net Total assets 2019 Assets $ 27,000 $ 20,000 30,000 35,000 14,000 27,000 30,000 5,000 46,000 25,000 $147,000 $112,000 Liabilities and Shareholder's Equity Trade payables $ 26,000 $ 20,000 Dividends payable 2,000 10,000 Long-term notes payable 25,000 16,000 Common shares 46,000 21,000 Retained earnings 48,000 45,000 Total liabilities and shareholder's equity $147,000 $112,000 Revenue $310,000 Cost of sales 208,000 Gross profit 102,000 Gain on sale of equipment 4,000 Expenses Depreciation 8,000 Other expenses 88,000 Total expenses 96,000 Net income $ 10,000 Additional information: 1. The carrying amount of the equipment at the end of 2020 and 2019 was determined as follows: 2020 59,000 (13,000) Equipment Accumulated depreciation: Equipment 2019 40,000 (15,000) Net carrying amount $ 46,000 $ 25,000 2. Equipment with a cost of $21,000 and accumulated depreciation of $10,000 was sold for cash during 2020. 3. Land costing $25,000 was purchased during 2020 in exchange for common shares instead of cash. There were no other non-cash transactions during 2020. Required: Prepare a statement of cash flows for the year ended December 31, 2020 using the direct method.