85,000 MIGITSU COMPANY Comparative Balance Sheets December 31 Assets 2020 Cash $75,000 Accounts receivable Inventories 171,000 Land 74,000 Equipment 258,000 Accumulated depreciation (66,000 ) Total $597,000 Liabilities and Stockholders' Equity Accounts payable $37,000 Bonds payable 149,000 Common stock ($1 par) 214,000 Retained earnings 197,000 Total $597,000 2019 $24,000 77,000 189,000 101,000 202,000 (35,000) $558,000 $51,000 212,000 175,000 120,000 $558,000 Additional information: 1. Net income for 2020 was $112,000. 2. Cash dividends of $35,000 were declared and paid. 3. Bonds payable amounting to $63,000 were redeemed for cash $63,000. 4. Common stock was issued for $39,000 cash. 5. Equipment that cost $50,000 and had a book value of $30,000 was sold for $36,000 during 2020; land was sold at cost. (a) Prepare a statement of cash flows for 2020 using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g.-15 MIGITSU COMPANY Statement of Cash Flows