The financial statements of SeasideLimited appear below:SEASIDELIMITEDComparative Statement of Financial PositionDecember 3120202019AssetsCash$ 59,000$ 23,000Accounts receivable31,00034,000Merchandise inventory20,00015,000Property, plant, and equipment50,00078,000Accumulated depreciation(20,000) (24,000)Total$140,000$126,000Liabilities and Shareholders' EquityAccounts payable$ 15,000$ 23,000Income taxes payable13,0008,000Mortgage notes payable9,00033,000Common shares39,00024,000Retained earnings64,00038,000Total$140,000$126,000SEASIDELIMITEDStatement of EarningsYear Ended December 31, 2020Sales$380,000Cost of goods sold290,000Gross profit90,000Operating expenses36,000Earnings from operations54,000Interest expense4,000Earnings before income taxes50,000Income tax expense10,000Net earnings$ 40,000The following additional data were provided:1) Dividends were declared and paid in 2020.2) During the year, equipment was sold for $12,000 cash. This equipment cost $28,000 originally and had a carrying amountof $12,000 at the time of sale.3) Depreciationexpense included in operating expenses.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.InstructionsPreparea cash flow statement for SEASIDELimited using thedirectmethod. (15 marks)