Problem 3

The comparative balance sheets for Hamilton Inc. appear below:

	Dec 31, 2020	Dec. 31, 2019
Assets
Cash	$29,000	$10,000
Trade receivables	23,000	14,000
Prepaid expenses	6,000	9,000
Inventory	25,000	15,000
Long-term investments	0	23,000
Equipment	57,000	30,000
Accumulated depreciation-equipment	(18,000)	(14,000)
Total assets	$122,000	$87,000
Liabilities and Shareholders' Equity
Trade payables	$21,000	$9,000
Mortgage notes payable	37,000	45,000
Common shares	40,000	23,000
Retained earnings	24,000	10,000
Total liabilities and shareholders' equity	$122,000	$87,000

Additional information: 1. Net income for the year ending December 31, 2020 were $27,000. 2. Cash dividends of $13,000 were declared and paid during the year ended December 31 2020. 3. Long-term investments that had a carrying amount of $23,000 were sold for $18,000 in 2020.

Prepare only the cash flow from operating activities for the year ended Dec 31, 2020 using the indirect method.