Colin is the President of Guitar Gallery, Inc. He is examining the income statement for the year ended December 31, 2020, which has just been handed to him by his accountant, Casey who is a CPA. After looking at the statement, Colin said to Casey, Casey, the statement seems to be well done, but what I need to know is why I don't have enough cash to pay my bills this month. We had a good year and earned net income of $60,000. I realize that we paid dividends to our stockholders in the amount of $24,000 but I need to see a cash flow statement so that I can see where my cash is going. The statements examined by Colin are shown below. Guitar Gallery, Inc. Income Statement For the Year Ended December 31, 2020 Sales $442,000 Cost of goods sold 254,000 Gross margin 188,000 Operating expenses (including depreciation expense of $10,000) 102,000 Operating income 86,000 Interest expense 12,000 Income before income taxes 74,000 Income taxes 14,000 Net income $ 60,000 Guitar Gallery, Inc. Balance Sheets December 31, 2020 and 2019 2020 2019 Assets Cash $ 2,000 $ 20,000 Accounts receivable 139,000 73,000 Inventory 140,000 90,000 Prepaid expenses 5,000 7,000 Property and equipment 300,000 Accumulated depreciation 10,000 0 0 Total assets $576,000 $190,000 Liabilities and Stockholders' Equity $ 48,000 Accounts payable $ 37,000 Income taxes payable 3,000 2,000 Note payable 260,000 0 Common stock 200,000 Retained earnings 76,000 100,000 40,000 Total liabilities and equity $576,000 $190,000 Required 1. Prepare the statement of cash flows for the year ended December 31, 2020 using the indirect method. 2. Comment on your impression of the company's cash flow for the year 2020