Brecker Inc. Income Statement For the Year Ending December 31, 2020 Sales revenue $338,150 Cost of goods sold 175,000 Gross profit 163,150 Operating expenses 120,000 Operating income 43,150 Interest expense $11,400 Gain on sale of equipment 2,000 9,400 Income before tax 33,750 Income tax expense 6,750 Net income $ 27,000 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2020. Instructions Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedul E23.13 (LO 2, 3) (SCF-Direct Method) Brecker Inc., a greeting card company, had the following statements prepared as of December 31, 2020. Brecker Inc. Comparative Balance Sheet As of December 31, 2020 and 2019 12/31/20 Cash $ 6,000 Accounts receivable 62,000 Short-term debt investments (available-for-sale) 35,000 Inventory 40,000 Prepaid rent 5,000 Equipment 154,000 Accumulated depreciation equipment (35,000) Copyrights 46,000 Total assets $313,000 Accounts payable $ 46,000 Income taxes payable 4,000 Salaries and wages payable 8,000 Short-term loans payable 8,000 Long-term loans payable 60,000 Common stock, $10 par 100,000 Contributed capital, common stock 30,000 Retained earnings 57,000 Total liabilities and stockholders' equity $313,000 12/31/19 $ 7,000 51,000 18,000 60,000 4,000 130,000 (25,000) 50,000 $295,000 $ 40,000 6,000 4,000 10,000 69,000 100,000 30,000 36,000 $295,000