A comparative statement of financial position for Sarasota Corporation follows: SARASOTA CORPORATION Statement of Financial Position December 31 Assets 2020 2019 Cash $70,200 $31,320 Accounts receivable 93,960 63,720 Inventory 143,640 87,480 FV-OCI investments in shares 68,040 90,720 Land 70,200 111,240 Equipment 421,200 464,400 Accumulated depreciation-equipment (126,360 ) (92,880 ) Goodwill Total Liabilities and Shareholders' Equity 133,920 186,840 $874,800 $942,840 Accounts payable Dividends payable $12,960 $55,080 16,200 34,560 Notes payable 237,600 361,800 Common shares 286,200 135,000 Retained earnings 311,040 306,720 Accumulated other comprehensive income 10,800 49,680 Total $874,800 $942,840 Additional information: 1. Net income for the fiscal year ending December 31, 2020, was $20,520. 2. 3. 4. 5. 6. 7. In March 2020, a plot of land was purchased for future construction of a plant site. In November 2020, a different plot of land with original cost of $92,880 was sold for proceeds of $102,600. In April 2020, notes payable amounting to $151,200 were retired through the issuance of common shares. In December 2020, notes payable amounting to $27,000 were issued for cash. FV-OCI investments were purchased in July 2020 for a cost of $16,200. By December 31, 2020, the fair value of Sarasota's portfolio of FV-OCI investments decreased to $68,040. No FV-OCI investments were sold in the year. On December 31, 2020, equipment with an original cost of $43,200 and accumulated depreciation to date of $12,960 was sold for proceeds of $22,680. No equipment was purchased in the year. Dividends on common shares of $34,560 and $16,200 were declared in December 2019 and December 2020, respectively. The 2019 dividend was paid in January 2020 and the 2020 dividend was paid in January 2021. Dividends paid are treated as financing activities. A loss on impairment was recorded in the year to reflect a decrease in the recoverable amount of goodwill. No goodwill was purchased or sold in the year. Prepare a statement of cash flows using the indirect method for cash flows from operating activities. (Show amounts that decrease cash flow with either a -sign e.g. -15,000 or in parenthesis e.g. (15,000).) (a) SARASOTA CORPORATION Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Net Income/(Loss) Adjustments to reconcile net income to net cash used by operating activities: Depreciation Expense > 46,440 +A $ 20,520 < ^ > < > > > > > > $ During the year, Sarasota retired $ in notes payable by issuing common shares