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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,
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 2019 Assets Cash Accounts receivable Inventory Land Equipment, net Total assets $ 27,000 30,000 14,000 30,000 46,000 $147,000 $ 20,000 35,000 27,000 5,000 25,000 $112,000 Liabilities and Shareholder's Equity Trade payables Dividends payable Long-term notes payable $ 26,000 2,000 25,000 $ 20,000 10,000 16,000 Common shares Retained earnings 46,000 48,000 21,000 45,000 Total liabilities and shareholder's equity $147,000 $112,000 $ 310,000 208,000 102,000 4,000 Revenue Cost of sales Gross profit Gain on sale of equipment Expenses Depreciation Other expenses Total expenses Net income 8,000 88,000 96,000 $ 10,000 Additional information: 1. The carrying amount of the equipment at the end of 2020 and 2019 was determined as follows: 2020 2019 Equipment 59,000 40,000 Accumulated depreciation: Equipment _(13,000) (15,000) Net carrying amount $ 46,000 $ 25,000 a 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 indirect method
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