Current Attempt in Progress Digiread Technologies Ltd. (DTL) is a privately held distributor of e-readers and tablets. The Calgary-based company is well established and is currently managed by its founder, Erin Jacobs. The company's financial statements are presented below, together with some additional information DIGIREAD TECHNOLOGIES LTD. Statement of Income For the Year Ended December 31, 2020 Sales revenue $60,600,000 Cost of goods sold 41,280,000 Gross profit 19,320,000 Wages expense 4,800,000 Depreciation expense 1,440,000 Interest expense 2,280,000 Income tax expense 1,920,000 Gain on sale of equipment (720,000) Net income $9,600,000 DIGIREAD TECHNOLOGIES LTD. Statement of Financial Position As at December 31 2020 2019 Assets $18,600,000 $10,200,000 13,800,000 18,600,000 20,280,000 22,800,000 52,680,000 51,600,000 47,280,000 36,000,000 (7.920,000) (7,680,000) $92,040,000 $79,920,000 Current assets: Cash Accounts receivable (net) Inventory Total current assets Equipment Accumulated depreciation, equipment Total Assets Liabilities and shareholders' equity Current liabilities: Accounts payable Wages payable Total current liabilities Bonds payable Common shares Retained earnings Total liabilities and shareholders' equity $8,400,000 $14,280,000 1,440,000 15,720,000 25,200,000 1,200,000 9,600,000 31,200,000 16,800,000 10,800,000 34,320,000 28,320,000 $92,040,000 $79,920,000 DIGIREAD TECHNOLOGIES LTD. Other Selected Financial Information for the Year Ended December 31, 2020 Total sales in 2020 were consistent with the prior year's, and the company's dividend policy has remained consistent for the past five years. 1. 2. During 2020, DTL sold a piece of equipment for $2,520,000. The equipment had originally cost $3,000,000 and had a net carrying amount of $1,800,000 at the time of sale. 3 On August 1, 2020, DTL's board of directors approved the retirement of bonds with a carrying amount $6,000,000 through the issuance of common shares. (a1) DTL's management shareholders have asked you to prepare the statement of cash flows for DTL using indirect method for determining cash flows from operating activities. (Show amounts that decrease cash flow with either a-signeg.-15,000 or in parenthesis eg. (15,000).) DIGIREAD TECHNOLOGIES LTD. Statement of Cash Flows, Indirect Method For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income Depreciation Expense Gain on Sale of Equipment Decrease in Accounts Receivable Decrease in Inventories Increase in Accounts Payable Decrease in Waees Pavable Net Cash Used for Operatine Activities Cash Flows from Investing Activities Gain on Sale of Equipment Purchase of Equipment Net Cash Used for Investine Activities Cash Flows from Financing Activities Dividend Paid Net Cash Used for Financing Activities Opening Cash $ LITTI Endine Cash Supplemental Cash Flow information: Cash paid for interest $ Cash paid for income tax $ Non-cash investing and financing activities: During the year, the company's board of directors approved the retirement of bonds with a carrying amount of $ through the issuance of common shares