The comparative statements of financial position for Sarah Production Ltd include the following information. 2020 2019 31 December 31 December Debit balances Equity investments $0 $3,000 Motor vehicle 0 29,750 Equipment 45,000 20,000 Prepayment 5,000 6,250 Inventory 12,000 9,000 Accounts receivable 12,250 10,000 Cash 33,500 13,000 $107,750 $91,000 Credit balances Share capital - ordinary Retained earnings Allowance for impairment Accumulated depreciation - equipment Accumulated depreciation - motor vehicle Accounts payable Dividend payable Long-term notes payable Accrued charges $43,000 20,750 3,000 2,000 0 5,000 0 31,000 3,000 $107,750 $33,000 6,000 4,500 4,500 6,000 3,000 5,000 25,000 4,000 $91,000 Additional information during the year ended 31 December 2020: 1. Equipment that had cost $11,000 with accumulated depreciation of $4,400. During the year, it was disposed for $2,500. 2. Purchases of new equipment during the year, $36,000 were financed by paying $20,000 in cash and issuing a long-term note payable for $16,000. 3. Cash dividends paid were $5,000. 4. On 1 July 2020, the motor vehicle was completely destroyed by a flood. Insurance proceeds on the motor vehicle were $32,000. 5. Equity investments were sold at $1,700 above their cost. Required: Prepare the operating activities section of a statement of cash flows. Show ALL workings. (15 marks)