Condensed financial data of Teal Company for 2020 and 2019 are presented below. TEAL COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,790 $1,150 Receivables 1,780 1,330 Inventory 1,620 1,890 Plant assets 1,930 1,700 Accumulated depreciation (1,200) (1,180) Long-term investments (held-to-maturity) 1,310 1,420 $7,230 $6,310 Accounts payable Accrued liabilities Bonds payable Common stock Retained earnings $1,210 $920 210 240 1,370 1,530 1,860 1,670 2,580 1,950 $7,230 $6,310 TEAL COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,970 Cost of goods sold 4,680 Gross margin 2,290 Selling and administrative expenses 940 Income from operations 1,350 Other revenues and gains Gain on sale of investments 80 Income before tax 1,430 Income tax expense 540 Net income 890 Cash dividends 260 Income retained in business $630 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).) 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).) 890 TEAL COMPANY 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 Net Cash Provided by Operating Activities Depreciation Expense Gain on Sale of Investments Increase in Accounts Receivable Decrease in Inventory Increase in Accounts Payable 20 (80) (450) 270 290 Decrease in Accrued Liabilities (30) 20 Net Cash Provided by Operating Activities V 910 230 Cash Flows from Investing Activities Purchase of Plant Assets Sale of Investments Net Cash Provided by Investing Activities SK 190 420 (260) Cash Flows from Financing Activities Payment of Cash Dividends Issuance of Capital Stock Redemption of Bonds Payable Net Cash Used by Financing Activities 70 (160) (330) 1000 Net Increase in Cash Cash at Beginning of Period 1150 Cash at End of Period 1790 Noncash Investing and Financing Activities Issuance of Common Stock for Plant Assets 701