accounts options:

• Loss
• Profit
• Cash and cash equivalents, December 31, 2020
• Cash and cash equivalents, January 1, 2020
• Decrease in accounts payable
• Decrease in accounts receivable
• Decrease in inventory
• Decrease in wages payable
• Depreciation expense
• Gain on sale of investment
• Increase in accounts payable
• Increase in accounts receivable
• Increase in inventory
• Increase in prepaid expenses
• Issuance of bonds payable
• Loss on sale of equipment
• Payment of dividend
• Proceeds from sale of equipment
• Proceeds from sale of investment
• Purchase of equipment
• Net cash inflow from operating activities
• Net cash outflow from operating activities

• Net cash inflow from investing activities
• Net cash outflow from investing activities

• Net decrease in cash and cash equivalents
• Net increase in cash and cash equivalents

Instant Brake Inc.'s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows: Instant Brake Inc. Income Statement December 31, 2020 Sales $881, 000 Cost of goods sold 570,000 Gross profit $311, 000 Operating expenses $132, 660 Depreciation expense 41, 220 173, 880 Operating Profit 137, 120 Loss on sale of equipment 12, 670 Investment income 19,520 Profit before taxes 143,970 Income taxes 18, 000 Profit $125,970Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Net Change Cash $ 42,000 $ 23,760 $ 18, 240 Cash equivalents 25, 280 8,400 16,880 Accounts receivable 87,120 31, 440 55,680 Inventory 113, 040 77,520 35, 520 Investment 0 25, 280 25,280) Land 75,600 75,600 Building and equipment 417, 820 437,340 (19,520) Accumulated depreciation 112, 050 90,960 21, 090 Accounts payable 11, 290 36, 600 (25,310) Dividends payable 2,000 1, 200 800 Bonds payable 18,000 18,000 Preferred shares 80, 400 80, 400 Common shares 404, 880 404, 880 Retained earnings 132, 240 65,300 66,940 During 2020, the following transactions occurred: 1. Purchased equipment for $20,800 cash. 2. Sold the investment on January 1, 2020, for $44,800, resulting in investment income of $19,520. 3. Sold equipment for $7,520 cash that had originally cost $40,320 and had $20,130 of accumulated depreciation. 4. Issued $18,000 of bonds payable at face value.\f2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Adjustments to reconcile profit to net cash inflows from operating activities: 0 Cash flows from investing activities: