0 Preparing a Cash Flow Statement-Indirect Method Denton Corporation's balance sheet accounts as of December 31, 2019, and 2020, and information relating to 2020 activities are presented below. Balance Sheets, December 31 2020 2019 Assets Cash $552,000 $240,000 Short-term investments - 720,000 0 Accounts receivable (net) 1,224,000 1,224,000 Inventory 1,632,000 1,440,000 Long-term investments 480,000 720.000 Equipment 4,080,000 2,400,000 Accumulated depreciation (1,080,000) (1,080,000) Patent 216,000 240,000 Total assets $7,824,000 $5,184,000 Liabilities and Stockholders' Equity Accounts payable and accrued liabilities $1,980,000 $1,728,000 Short-term debt to financial institutions 780,000 0 Common stock, $10 par $ 1,920,000 1,680,000 Additional paid-in capital 888,000 600,000 Retained earnings 2,256,000 1,176,000 Total liabilities and stockholders' equity $7,824,000 $5,184,000 Information relating to 2020 activities 1. Net income for 2020 was $1,656,000. 2. Cash dividends of $576,000 were declared and paid in 2020. 3. Equipment costing $960,000 and having a carrying amount of $360,000 was sold in 2020 for $360,000. 4. A long-term investment was sold in 2020 for $324,000. There were no other transactions affecting long-term investments in 2020. 5.24,000 shares of common stock were issued in 2020 for $22 per share. 6. Short-term investments consist of Treasury bills maturing on June 30, 2021, and are reported at fair value. Assume no change in fair value from the date of purchase. Prepare the statement of cash flows for Denton Corporation for the year ended December 31, 2020, assuming the indirect method in presenting cash flows from operating activities. Prepare the statement of cash flows for Denton Corporation for the year ended December 31, 2020, assuming the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income $ 1,656,000 Adjustments: Depreciation expense 600,000 Amortization of patent 24,000 Gain on sale of long-term investment x Increase in inventory Increase in accounts payable and accrued liabilities Net cash provided (used) by operating activities Cash flows from investing activities Sale of equipment OX Sale of long-term investment OX Purchase of short-term investment Purchase of plant assets OX Net cash provided (used) by investing activities OX Cash flows from financing activities Proceeds from short-term debt financing OX Proceeds from stock issuance OX Cash paid for dividends OX Net cash provided (used) by financing activities OX Net increase in cash during 2020 OX Cash, January 1, 2020 0 X Cash, December 31, 2020 $ OX