$($ANSWER QUESTION WITH DIRECT METHOD$)($NOT INDIRECT METHOD$)$

Instant Brake Inc.$\text{'}$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:

During $2020,$ the following transactions occurred:

Purchased equipment for $$20,700$ cash.

Sold the investment on January $1,2020,$ for $$43,800,$ resulting in investment income of $$19,020.$

Sold equipment for $$7,470$ cash that had originally cost $$39,720$ and had $$20,110$ of accumulated depreciation.

Issued $$19,000$ of bonds payable at face value.

Other information:

a$.$ All sales are credit sales.

b$.$ All credits to accounts receivable in the period are receipts from customers.

c$.$ All purchases of merchandise are on credit.

d$.$ All debits to accounts payable in the period result from payments for merchandise.

e$.$ Other operating expenses are cash expenses.

f$.$ Income taxes are cash expenses.

Required:

Prepare a statement of cash flows for $2020$ using the DIRECT METHOD to report cash inflows and outflows from operating activities. $($List

any deduction in cash and cash outflows as negative amounts.$)$