Boca Inc. Balance Sheets December 31 Assets 2020 2019 Cash $41,400 $48,400 Accounts Receivable 29,600 29,000 Inventory 86,000 37,550 Prepaid Expenses 112,500 102,850 Long-term Investments 137,000 109,000 Plant Assets 368,000 239,500 Accumulated depreciation (50,000) (52,000) Total $724,500 $514,300 Liabilities and Stockholders' Equity Accounts Payable $16,500 $20,000 Wages Payable 62,000 67,300 Dividends Payable 10,000 6,000 Bonds Payable 170,000 140,000 Common Stock 262,000 175,000 Retained Earnings 204,000 106,000 Total $724,500 $514,300

Additional Information: 1. Old plant assets having an original cost of $50,000 and a book value of $46,500 were sold for $50,000 cash. 2. A new plant asset was purchased directly in exchange for common stock valued at $22,000. 3. New bonds were issued at par for $40,000. 4. Net income was $154,490. 5. A $1,000 prior period adjustment was recorded in 2020 correcting an overstatement of depreciation in 2015. The 2019 balance sheet is appropriately restated. 6. Long-term Investments costing $20,000 were sold for $17,000.

Required 1. Prepare a 2020 statement of cash flows using the indirect method. Use the textbook format (Illustrations 23.8, 23.12, 23.16). Do not submit supporting computations.