Exercise 22-14 (b) (indirect method)

Indigo Inc., a greeting card company that follows ASPE, had the following statements prepared as at December 31, 2020:

INDIGO INC. Comparative Statement of Financial Position December 31
			2020			2019
Cash			$52,795			$25,120
Accounts receivable			58,040			51,090
Inventory			39,980			60,020
Prepaid rent			5,270			4,170
Equipment			157,450			130,110
Accumulated depreciationequipment			(35,270	)		(25,170	)
Goodwill			20,000			60,000
	Total assets		$298,265			$305,340
Accounts payable			$46,250			$40,110
Income tax payable			3,980			6,020
Salaries and wages payable			8,120			4,120
Shortterm loans payable			8,040			10,090
Longterm loans payable			60,000			79,000
Common shares			130,000			130,000
Retained earnings			41,875			36,000
	Total liabilities and shareholders equity		$298,265			305,340

INDIGO INC. Income Statement Year Ending December 31, 2020
Sales revenue					$348,085
Cost of goods sold					165,000
Gross margin					183,085
Operating expenses					120,000
Operating income					63,085
Interest expense		$11,600
Impairment lossgoodwill		40,000
Gain on disposal of equipment		(2,300	)		49,300
Income before income tax					13,785
Income tax expense					4,110
Net income					$9,675

Additional information:

1.		Dividends on common shares in the amount of $3,800 were declared and paid during 2020.
2.		Depreciation expense is included in operating expenses, as is salaries and wages expense of $72,000.
3.		Equipment with a cost of $34,000 that was 70% depreciated was sold during 2020.

Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)