Comparative balance sheet accounts of Bonita Inc. are presented below. BONITA INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,300 $33,700 Accounts Receivable 70,000 60,400 Inventory 30,300 24,100 22,000 38,700 Equity investments Machinery 29,900 18,900 Buildings 67,000 56,100 Land 7,600 7,600 $269,100 $239,500 Credit Accounts $2,200 $1,500 Allowance for Doubtful Accounts Accumulated Depreciation-Machinery 5,600 2,300 Accumulated Depreciation-Buildings 13,300 9,000 Accounts Payable 35,000 25,000 Accrued Payables 3,400 2,600 Long-Term Notes Payable 21,000 30,600 Common Stock, no-par 150,000 125,000 Retained Earnings 38,600 43,500 $269,100 $239,500 1. Net income for the year was $41,300. 2. Cash dividends declared and paid during the year were $21,200. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 3. 4. Equity investments (level of ownership is less than 20%) that cost $25,200 were sold during the year for $28,900. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. Bonita's 2020 income statement follows (ignoring taxes). Sales revenue $534,300 Less: Cost of goods sold 376,200 Gross margin 158,100 Less: Operating expenses (includes $8,350 depreciation and $5,076 bad debts) 119,700 Income from operations 38,400 Other: Gain on sale of investments $3,700 Loss on sale of machinery (800) 2,900 Net income $41,300 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45).) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - signe.g.-15,000 or in parenthesis e.g. (15,000).) BONITA INC. Statement of Cash Flows (Indirect Method) $ Adjustments to reconcile net income to > >