The Western Corporation 2019 and 2020 Balance Sheets included the following items:

The Western Corporation
Comparative Balance Sheets
As of December 31st, 2019 and 2020
			2020	2019
Cash			90,960	42,000
Accounts Receivable			96,000	74,400
Merchandise Inventory			80,160	116,160
Prepaid expenses			6,480	6,240
Equipment			156,000	144,000
TOTAL ASSETS			429,600	382,800
Accumulated Depreciation, Equipment			33,600	12,000
Accounts Payable			31,200	38,400
Wages payable			8,400	19,200
Taxes Payable			2,880	4,320
Notes payable (long-term)			48,000	84,000
Common Shares, no-par value			276,000	216,000
Retained Earnings			29,520	8,880
TOTAL LIABILITIES & EQUITY			429,600	382,800

The Western Corporation Income Statement was as follows:

The Western Corporation
Income Statement
For The Year Ended December 31st, 2020
Revenue:
Sales					786,000
Cost Of Goods Sold					478,800
Gross Profit					$307,200
Depreciation Expenses:				70,320
Other Expense				80,400
Total Operating Expense					150,720
Profit from operations					156,480
Gain on Sale of equipment					2,400
Profit before Taxes					158,880
Income Taxes					54,768
NET INCOME					104,112

Required:

Prepare the STATEMENT OF CASH FLOWS using the indirect method for the year ended December 31, 2020. Additional information includes the following:

1. A note is retired at carrying value
2. The only changes affecting retained earnings during 2020 are profit and cash dividends paid.
3. New equipment is acquired during 2019 for $70,320
4. The profit on sale of equipment costing $58,320 during 2019 is $2,400