Comparative balance sheet accounts of Tamarisk Inc. are presented below. TAMARISK INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $41,700 $33,500 Accounts Receivable 69,800 59,400 Inventory 29,700 24,300 Equity investments 22,100 38,400 Machinery 29,900 18,500 Buildings 67,200 55,700 Land 7,600 7,600 $268,000 $237,400 Credit Accounts Allowance for Doubtful Accounts $2,300 $1,600 5,600 2,300 Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings 13,600 8,900 Accounts Payable 35,100 24,600 Accrued Payables 3,300 2,600 Long-Term Notes Payable 20,900 31,000 Common Stock, no-par 150,000 125,000 Retained Earnings 37,200 41,400 $268,000 $237,400 Comparative balance sheet accounts of Tamarisk Inc. are presented below. Additional data (ignoring taxes): 1. Net income for the year was $41,700. 2. 3. Cash dividends declared and paid during the year were $20,900. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. Equity investments (level of ownership is less than 20%) that cost $25,200 were sold during the year for $29,000. No unrealized gains and losses were recorded on these investments in 2020. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. 4. 5. Tamarisk's 2020 income statement follows (ignoring taxes). Sales revenue $535,500 376,800 Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,750 depreciation and $5,666 bad debts) 158,700 120,000 Income from operations 38,700 Other: Gain on sale of investments $3,800 Loss on sale of machinery (800) 3,000 Net income $41,700 (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 $ (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).) TAMARISK INC. Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income $ Adjustments to reconcile net income to >