Comparative balance sheet accounts of Carla Inc. are presented below. CARLA INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,400 $34,100 Accounts Receivable 69,900 60,400 Inventory 30,100 23,900 Equity investments 22,500 38,200 Machinery 30,200 18,700 Buildings 67,400 56,300 Land 7,400 7.400 $269,900 $239,000 Credit Accounts Allowance for Doubtful Accounts $2,300 $1,500 Accumulated Depreciation-Machinery 5.700 2.200 Accumulated Depreciation-Buildings 13.600 8.900 Accounts Payable 34,700 24,500 Accrued Payables 3,300 2,700 Long-Term Notes Payable 21,100 31,000 Common Stock, no-par 150.000 125.000 Retained Earnings 39,200 43.200 $269,900 $239,000 Additional data (ignoring taxes): 1. Net income for the year was $42,000. 2. Cash dividends declared and paid during the year were $21,000. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $25,100 were sold during the year for $28,800. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150. Carla's 2020 income statement follows (ignoring taxes). Sales revenue $541,900 Less: Cost of goods sold 381,300 160,600 Gross margin Less: Operating expenses (includes $8,950 depreciation and $5,933 bad debts) 121,500 Income from operations 39,100 Other: Gain on sale of investments $3,700 Loss on sale of machinery (800) 2,900 Net income $42,000 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net cash flow from operating activities $ 43,950 (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).) (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) CARLA INC. Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income $ 42.000 Adjustments to reconcile net income to Net Increase in Cash Increase in Accounts Receivable (Net) (9,500) Increase in Inventory (6,200) 800 ULT >