6 of 23 View Policies Current Attempt in Progress Sage Inc., a greeting card company, had the following statements prepared as of December 31, 2020. SAGE INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $5,900 $7,000 Accounts receivable 61,400 51,500 Short-term debt investments (available-for-sale) 35,000 18,200 Inventory 40,000 60,500 Prepaid rent 5,000 4,100 Equipment 152,900 131,100 Accumulated depreciation-equipment (35,200) (25,100) Copyrights Total assets 45,800 50,000 $310,800 $297,300 Accounts payable $46.100 $40,100 income taxes payable 3,900 5,900 Salaries and wages payable 8,000 4,000 Short-term loans payable 8,100 10,000 Long-term loans payable 60,400 69,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 54,300 38,000 Total liabilities & stockholders' equity $310,800 $297,300 SAGE INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold $332,700 176,000 Gross profit Operating expenses 156,700 119,300 Operating income 37,400 Interest expense $11,500 Gain on sale of equipment 2,100 9,400 Income before tax 28,000 Income tax expense 5,600 Net income $22,400 Additional information: 2. 3. 4. Dividends in the amount of $6,100 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $19,800 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a sign es-15,000 or in parenthesis eg. (15,000)) SAGE INC. Statement of Cash Flows Adjustments to reconcile net income to $