The comparative statement of financial position for Ralph Inc. appear below: (2021 is the first number, 2020 is the second number)

December 31, 2021

December 31, 2020

Assets

Cash

$ 18,000

$ 22,000

Accounts receivable

29,000

25,000

Inventory

15,000

17,000

Land

20,000

0

Equipment, net

24,000

16,000

Total assets

106,000

80,000

Liabilities and Shareholders' Equity

Accounts payables

11,000

25,000

Long-term notes payable

26,000

11,000

Common shares

15,000

12,000

Retained earnings

50,000

32,000

Total liabilities and shareholders' equity

106,000

80,000

Additional information:

Net earnings for the year ended December 31, 2021 were $20,000.

The carrying amount of the equipment at the end of 2021 and 2020 was determined as follows:

December 31, 2021

December 31, 2020

Equipment

$ 30,000

$ 26,000

Less: accumulated depreciation

(6,000)

(10,000)

Net carrying amount

24,000

16,000

Equipment with a cost of $16,000 and accumulated depreciation of $8,000 was sold for cash proceeds of $9,000 during 2021.

Equipment costing $15,000 was purchased during the year by issuing a note payable. All other equipment purchases were for cash. There were no other non-cash transactions during the year.

Required:

Prepare a statement of cash flows for the year ended December 31, 2021 using the indirect method.