Titiki Ltd. had the following comparative statement of financial position:

Titiki Ltd. Comparative Statement of Financial Position As at December 31

2020 2019

Cash $20,500 $12,500 Accounts receivable 34,000 25,500 Inventories 20,000 30,000 Prepaid insurance 2,500 2,000 Equipment 102,000 90,000 Accumulated depreciationequipment (22,500) (12,500) Total assets $156,500 $147,500 Accounts payable $23,000 $20,000 Wages payable 4,000 2,000 Interest payable 2,000 3,000 Income taxes payable 4,000 5,000 Long-term note payable 30,000 34,500 Common shares 65,000 65,000 Retained earnings 28,500 18,000 Total liabilities and shareholders equity $156,500 $147,500 Additional information: Net income for the fiscal year was $13,500. Equipment that cost $10,000 and was sold for a gain of $1,000 during 2020. The equipments accumulated depreciation was $7,000. Required: Prepare the statement of cash flows using the indirect format.