Boca Inc.
Balance Sheets
December 31
	Assets									2020	2019
	Cash									40,800	48,400
	Accounts Receivable									28,400	26,000
	Inventory									87,800	38,000
	Prepaid Expenses									112,500	102,850
	Long-term Investments									138,000	109,000
	Plant Assets									367,000	242,500
	Accumulated depreciation									(50,000)	(52,000)
	Total									724,500	514,750
	Liabilities and Stockholders' Equity
	Accounts Payable									13,500	21,000
	Accrued Expenses Payable									72,000	67,300
	Dividends Payable									3,000	-
	Bonds Payable									170,000	146,000
	Common Stock									262,000	175,000
	Retained Earnings									204,000	105,450
	Total									724,500	514,750
Additional Information:
1. Old plant assets having an original cost of $57,500 and accumulated depreciation of $48,500 were sold for $7,500 cash.
2. A new plant asset was purchased directly in exchange for common stock valued at $42,000.
3. New bonds were issued at par for $36,000.
4. Net income was $154,480.
5. A $1,000 prior period adjustment was recorded in 2020 correcting an understatement of depreciation in 2015. The 2019 balance sheet is appropriately restated.
6. The increase in Long-term Investments was due to a purchase of investments.
Required
1. Prepare a 2020 statement of cash flows using the indirect method. Use the textbook format (pages 1,339, 1,342, 1,345). Do not submit supporting computations.

Example of requested format:

s bnus lepiesertts an how of cash from a financ- ing activity . Increase in Retained Eanings. Retained earmings increased $116,000 during the year. Two factors explain this increase. (1) Net income of $134,000 increased retained earnings, and (2) dividends of $18,000 decreased retained earnings. As indicated earlier, the company adjusts net income to net cash provided by operating activities in the operating activities section. Payment of the dividends is a financing activity that involves a cash outflow. Statement of Cash Flows-2017. Combining the foregoing items, we get a statement of cash flows for 2017 for Tax Consultants Inc, using the indirect method to compute net flow from operating activities. 12 lows, Year 2 TAX CONSULTANTS INC. STATEMENT OF CASH FLows FOR THE YEAR ENDED DECEMBER 31, 2017 Cash flows from operating activities $ 134,000 Net income Adjustments to reconcile net income to net cash provided by operating activities: Decrease in accounts receivable Increase in prepaid expenses Increase in accounts payable $ 21,000 10,000 (6,000) 35,000 60,000 194,000 Net cash provided by operating activities Cash flows from investing activitie Purchase of land Purchase of building Purchase of equipment Net cash used by investing activities (70,000) (200,000) (68,000) (338,000) Cash flows from financing activities Issuance of bonds Payment of cash dividends Net cash provided by financing activities 150,000 (18,000) Net decrease in cash Cash, January 1, 2017 Cash, December 31, 2017 132,000 (12,000) 49,000 $ 37,000 Illustration-2018 Our third example, covering the 2018 operations of Tax Consultants Inc, is more com- plex. It again uses the indirect method to compute and present net cash flow from oper- ating activities. Tax Consultants Inc. experienced continued success in 2018 and expanded its opera- tions to include the sale of computer software used in tax-return preparation and tax planning. 2018, balance sheet. Illustrations 23-13 and 23-14 show the comparative balance sheets, income statements, and selected data for 2018. Thus, inventory is a new asset appearing in the company's December 31