The financial statements of Lewis Limited appear below:

LEWIS LIMITED

Comparative statement of financial positions

31 December

20202019

Assets

Cash$44,000$23,000

Accounts receivable26,00034,000

Merchandise inventory20,00015,000

Property, plant, and equipment50,00078,000

Accumulated depreciation(20,000)(24,000)

Total$120,000$126,000

Liabilities and equity

Accounts payable$15,000$23,000

Income taxes payable13,0008,000

Notes payable7,00033,000

Ordinary shares41,00024,000

Retained earnings44,00038,000

Total$120,000$126,000

LEWIS LIMITED

Income statement

for the year ended 31 December 2020

Sales$350,000

Cost of sales280,000

Gross profit70,000

Selling expenses$20,000

Administrative expenses16,00036,000

Income from operations34,000

Interest expense4,000

Income before income taxes30,000

Income tax expense10,000

Profit after income tax$20,000

The following additional data were provided:

1. Dividends declared and paid were $14,000.
2. During the year equipment was sold for $12,000 cash. This equipment cost $28,000 originally and had a carrying amount of $12,000 at the time of sale.
3. All depreciation expense is in the selling expense category.
4. All sales and purchases are on account.
5. Accounts payable pertain to merchandise suppliers.
6. All operating expenses except for depreciation were paid in cash.

Required:

Prepare statement of cash flows for Lewis Limited using the direct method.