Question $2(25$ Marks$)$

The comparative balance sheers for Hamilion Inc. appear below

Assers

Cash

Trade receivables

Prepaid expenses

Inventory

Long$-$term investments

Equipment

Accumulated depreciation$-$equipment

Total assets

Liabilities and Shareholders' Equity

Trade payables

Mortgage notes payable

Common shares

Retained earnings

Total liabilities and shareholders' equity

Dec $31,2020$

$$29,000$

$23,000$

$6,000$

$25,000$

$0$

$57,000$

$(18,000)$

$$122,000$

$$21,000$

$37,000$

$40,000$

$24,000$

$$122,000$

Additional information:

Net income for the year ending December $31,2020$ were $$27,000.$

Cash dividends of $$13,000$ were declared and paid during the year ended December $31$

Long$-$term investments that had a carrying amount of $$23,000$ were sold for $$18,000$ in

Prepare the cash flow statement for the year ended Dec $31,2020$ using the indirect method.

$($Must use the proper cash$-$flow format studied in class$)$