Brazos Medical, Inc., ended 2019 with cash of \(\$ 24,000\). During 2020, Brazos earned net income of \(\$ 120,000\) and had adjustments to reconcile net income to net cash provided by operations totalling \(\$ 20,000\) (this is a negative amount).

Brazos paid \(\$ 300,000\) for equipment during 2020 and had to borrow half of this amount on a long-term note. During the year, the company paid dividends of \(\$ 15,000\) and sold old equipment, receiving cash of \(\$ 60,000\).

Prepare Brazos's statement of cash flows with its appropriate heading for the year ended December 31, 2020. Follow the format in the summary problem on pages 31-32.