Vaughn Inc. reported the following information at the end of its 2019 fiscal year. Vaughn Inc. Statement of Financial Position As at April 30 Assets 2020 2019 Cash 202,000 150,000 Accounts receivable 115,000 95,000 Inventory 106,000 255,000 Prepaid operating expenses 21,000 12,000 85, Long term investments 182,000 Equipment 1,235,000 1,161,000 Less: Accumulated depreciation (380,000) (365,000) 1,496,000 1,378,000 Liabilities and Shareholders' Equity Accounts payable 53,000 64,000 Income tax payable 25,000 31,000 Bonds payable 738,000 685,000 Common shares 300,000 255,000 Retained earnings 427,000 296,000 1,496,000 1,378,000 Vaughn Inc. Income Statement For the year ended April 30, 2020 Sales revenue 1,111,000 Cost of goods sold 696,000 Gross profit 415,000 Operating expenses 228,000 187,000 Income from operations Interest expense 4,000 Gain on disposal of equipment 3,500 Income before income tax 186,500 Income tax expense 17,560 $168,940 Net income ADDITIONAL INFORMATION: Depreciation expense is included in "operating expenses." All accounts payable transactions were related to the purchase of inventory. During the year, a piece of equipment that originally cost $49,300 was sold for cash. The equipment was 70% depreciated at the time of the sale. Long-term investments were purchased for cash during the year. Prepare a statement of cash flows, in good form, for Vaughn Inc., using the direct method. Vaughn Inc. follows ASPE. Vaughn Inc. Statement of Cash Flows