Prepare a statement of cash flows using the direct method

Andrews AG, a greeting card company had the following statements prepared as of December 31, 2019 Andrews AG Comparative Statement of Financial Position is as follows: 12/31/19 $154,000 (35,000) 12/31/18 $130,000 (25,000) 46,000 40,000 35,000 50,000 60,000 18,000 Equipment Accumulated Depreciation - equipment Copyrights Inventory Short-term investments (non- trading) Prepaid Rent Accounts Receivable Cash Total Assets Share Capital - ordinary -$10 par Share Premium - Ordinary Retained Earnings Long-term loans payable Accounts Payable Income taxes Payable Salaries and Wages Payable Short Term Loans Payable Total Equity and liabilities 5,000 62,000 6,000 $313,000 $100,000 30,000 57,000 60,000 46,000 4,000 8,000 8,000 313,000 4,000 49,000 9,000 $295,000 $100,000 30,000 36,000 67,000 42,000 6,000 4,000 10,000 $295,000 Andrews AG Statement of Comprehensive Income For the year ending December 31, 2019 $338,150 175,000 163,150 120,000 43,150 Sales Revenue Cost of Goods Sold Gross Margin Operating expenses Operating Income Interest Expense Gain on sale of equipment Income before tax Income tax expense Net Income $11,400 2,000 9,400 33,750 6,750 $27,000 Additional Information: 1. Dividends in the amount of $6,000 were declared and paid during 2019. 2. Depreciation expense and amortisation expense are included in operating expenses. 3. No unrealised gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $30,000 and was 70% depreciated was sold during 2019. Required: Prepare a statement of cash flows using the direct method (15marks)