A comparative statement of financial position for Carmichael Industries Inc. follows: CARMICHAEL INDUSTRIES INC. Statement of Financial Position December 31, 2020 December 31 Assets 2020 2019 Cash $21,000 $ 34,000 Accounts receivable 104,000 54,000 Inventory 220,000 189,000 Land 71,000 110,000 Equipment 260,000 200,000 Accumulated depreciation-equipment (69,000) (42,000) Total $607,000 $545,000 Liabilities and Shareholders' Equity Accounts payable $ 52,000 $ 59,000 Bonds payable 150,000 200,000 Common shares 214,000 164,000 Retained earnings 191,000 122,000 Total $607,000 $545,000 Additional information: 1. Net income for the fiscal year ending December 31, 2020, was $129,000. 2. Cash dividends of $60,000 were declared and paid. Dividends paid are treated as financing activities. 3. Bonds payable amounting to $50,000 were retired through issuance of common shares. 4. Land was sold at a gain of $5,000. 5. No equipment was sold during the year. Carmichael Industries Toe $129,000 Carmichael Industries Inc. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments to Reconcile Net Income to net cash provided by operating activities: Depreciation expense $27,000 Gain on disposal of land (5,000) Increase in accounts receivable (50,000) Increase in inventory (31,000) Decrease in accounts payable (7,000) Net cash provided by operating activities Cash flows from investing activities Purchase of equipment (60,000) Proceeds from sale of land 44,000 Net cash used by investing activities Cash flows used by financing activities Payment of cash dividends (60,000) Net cash used by financing activities Net decrease in cash Cash at beginning of year Cash at end of year (66,000) 63,000 16,000 (60,000) (13,000) 34,000 $21,000 During the year, Proghhorn retired $50,000 in bonds payable by issuing common shares. (b) Comment in general on the results reported in the statement of cash flows