Reference no: EM132728501

Question - White Horse Ltd. has prepared the following comparative statements of financial position at December 31, 2019 and 2020: White Horse adheres to ASPE.

	2020	2019
Cash	$150,000	$109,000
Accounts receivable	53,000	39,000
Inventory	50,000	60,000
Prepaid expenses	6,000	9,000
Property, plant & equipment	420,000	350,000
Accumulated depreciation	(150,000)	(125,000)
	$529,000	$442,000
Accounts payable	$51,000	$56,000
Accrued liabilities	20,000	14,000
Mortgage payable	-	150,000
Preferred shares	215,000	-
Common shares	200,000	200,000
Retained earnings	43,000	22,000
	$529,000	$442,000

Additional information:

1. There were no disposals of property, plant and equipment, but new equipment was purchased during 2020.

2. Depreciation expense was included in operating expenses.

3. Cash dividends declared and paid for the year.

The condensed income statement for 2020 is as follows:

Sales $660,000

Cost of sales 363,000

Gross profit 297,000

Operating expenses 230,000

Net income $67,000

Required - Using the above information make a statement of cash flows in proper format using indirect method for period ending December 31, 2020.