Account Paddleboard Inc. Post-Closing Trial Balance (000s) December 31 2020 2019 Cash $2,880 $1,840 Receivables 2,800 2,080 Merchandise inventory 2,560 3,040 Property, plant and equipment 3,040 2,720 Accumulated depreciation 1,920 1,840 Investments 2,080 2,240 Accounts payable 1,920 1,440 Accrued liabilities 320 480 Bonds payable 2,240 2,400 Common shares 3,040 2,720 Retained earnings 3,920 3,040 Other information regarding Paddleboard Inc. and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. There were no sales of property, plant, and equipment assets during the year. 4. Investments were sold for cash at their original cost. Required: Paddleboard Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31, 2019 and 2020, is shown below along with some other information. Paddleboard Inc. Income Statement For Year Ended December 31, 20201 Revenues: Sales (000s) Cost of goods sold Gross Profit Expenses: Other expenses Depreciation expense Total operating expenses Profit from operations Income tax expense Profit $3,784 1,536 2,248 $ 880 80 960 1,288 2881 $1,000 Required: Using the information provided, prepare a statement of cash flows (applying the indirect method) for the year ended December 31, 2020. (List any deduction in cash and cash outflows as negative amounts. Enter amounts in thousands, not in dollar.) Cash flows from operating activities: Profit PADDLEBOARD INC. Statement of Cash Flows For Year Ended December 31, 2020 (000s) Adjustments to reconcile net income to net cash inflows from operating activities Depreciation expense Increase in receivables Decrease in merchandise inventory Increase in accounts payable Decrease in accrued liabilities $ 1,000 80 (720) 480 480 (100) Cash flows from investing activities Receipt from sale of investment 80 $ 1.100 Increase in accounts payable Decrease in accrued liabilities Cash flows from investing activities: 480 (160) $ 1,160 Receipt from sale of investment $ 80 Payment for purchase of property, plant and equipment 320 Cash at end of year (240) 160 Cash flows from financing activities: Payment to retire bonds payable Receipt from issuing common shares Payment of cash dividends Cash at end of year Net cash inflow from financing activities: Net increase in cash Cash at beginning of year Cash at end of year $ (160) 320 (120) 0 40 $ 960 1.640 $ 2,800