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).)

Question 26 Pronghorn Inc., a retailer of garden tools that follows ASPE, had the following statements prepared as of December 31, 2020: PRONGHORN Inc. Comparative Statement of Financial Position December 31 2020 2019 Cash $57,950 $53,800 Accounts receivable 58,100 51,800 Inventory 42,800 72,500 Prepaid rent 6,200 4,000 Equipment 168,000 129,000 Accumulated depreciation equipment (36,450) (25,900) Total assets $296,600 $285,200 Accounts payable $48,500 $35,000 Income tax payable 4,000 6,200 Long-term loans payable 60,000 70,000 Common shares 126,550 126,550 Retained earnings 57,550 47,450 Total liabilities and shareholders' equity $296,600 $285,200 PRONGHORN Inc. Income Statement Year Ending December 31, 2020 Sales revenue $386,000 Cost of goods sold 212,000 Gross margin 174,000 Operating expenses 121,600 Operating income 52,400 Interest expense $11,700 Gain on disposal of equipment (3,000) 8,700 Income before income tax 43,700 Income tax expense 21,400 Net income $22,300 Additional information: 1. Dividends on common shares in the amount of $12,200 were declared and paid during 2020. 2. Depreciation expense of $24,900 is included in operating expenses. 3. Equipment with a cost of $20,500 that was 70% depreciated was sold during 2020