Preparation of Statement of Cash Flows (Format Provided)
Comparative Statements

Preparation of statement of cash flows (format provided)
Comparative statements of financial position for Burgundy Bay Ltd. are shown below: Burgandy adheres to ASPE.
$\begin{array}{ll} \quad\quad\quad\quad\text{\textbf{ BURGUNDY BAY LTD } . } \\\quad\quad\text{\textbf{ Statements of Financial Position } } \\&\quad\quad\quad\quad \text{ \underline{\text{ December 31 }} } \\ &\text{ \underline{\text{ 2020 }} } &\text{ \underline{\text{ 2019 }} } \\\text{ Cash } .............................................................. & \$ 30,900 & \$ 10,200 \\\text{ Accounts receivable (net) }............................... & 48,300 & 20,300 \\\text{ Inventory } ........................................................& 35,000 & 42,000 \\\text{ Long-term investments } .................................. & 0 & 15,000 \\\text{ Property, plant \& equipment } ........................ & 236,500 & 150,000 \\\text{ Accumulated depreciation} ..............................& (37,700) & (25,000) \\\text{ Total Assets } ................................................ .& \underline{\text{ \$313,000 }} & \underline{\text{ \$ 212,500 }} \\\\\text{ Accounts payable } ..........................................& \$ 19,000 & \$ 26,500 \\\text{ Accruedliabilities } ..........................................& 19,000 & 17,000 \\\text{ Long-term notes payable } ..............................& 70,000 & 50,000 \\\text{ Common shares }............................................ & 130,000 & 90,000 \\\text{ Retained earnings} ..........................................& \underline{\text{ 75,000 }} & \underline{\text{ 29,000 }} \\\text{ Total Liabilities } \& \text{ Shareholders' Equity } &\underline{\text{ \underline{\text{\$313,000 }} }} &\underline{\text{ \underline{\text{ \$ 212,500}} }} \\ \end{array}$ Additional information concerning transactions and events during 2020:
1. Net income was $ 80,000.
2. Sold the long-term investments for $ 28,000.
3. Paid cash dividends of $ 34,000.
4. Purchased machinery costing $ 26,500, paid cash.
5. Purchased machinery by signing a $ 60,000 long-term note payable.
6. Extinguished a $ 40,000 long-term note payable by issuing common shares.
Instructions
Using the format provided on the next page, prepare a statement of cash flows (indirect method) for calendar 2020 for Burgundy Bay Ltd.