Condensed financial data of Flounder Company for $2020$ and $2019$ are presented below.

FLOUNDER COMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER $31,2020$ AND $2019$

$2020$

Cash

$$1,780$

Receivables

$1,760$

Inventory

$1\mathrm{.}570$

Plant assets

$1,890$

$2019$

$$1\mathrm{.}140$

$1\mathrm{.}310$

$1\mathrm{.}900$

$1,720$

Accumulated depreciation

$(1\mathrm{.}190)1\mathrm{.}150$

Long$-$term investments $($held$-$to$-$maturity$)$

$1\mathrm{.}280$

$1,410$

$$7,090$

$$6,330$

Accounts payable

Accrued liabilities

Bonds payable

Common stock

Retained earnings

$$1,220$

$210$

$1,430$

$1,940$

$2\mathrm{.}290$

$$7\mathrm{.}090$

$$890$

$250$

$1,540$

$1,730$

$1\mathrm{.}920$

$$6,330$

FLOUNDER COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER $31,2020$

Sales revenue

$$6,670$

Cost of goods sold

$4,640$

Gross margin

$2,030$

Selling and administrative expenses

$930$

Income from operations

$1,100$

Other revenues and gains

Gain on sale of investments

$80$

Income before tax

$1,180$

Income tax expense

$550$

Net income

$630$

Cash dividends

$260$

Income retained in business

$$370$

Additional information:

During the year, $$70$ of common stock was issued in exchange for plant assets. No plant assets were sold in $2020.$

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$.(15,000).)$Statement of Cash Flows

For the Year Ended December $31,2020$

$($Indirect Method$)$

Cash Flows from Operating Activities

Adjustments to reconcile net income to

Cash Flows from Operating Activities

r$.$

$$

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