Condensed financial data ofWhisperingCompany for 2020 and 2019 are presented below.

WHISPERINGCOMPANY

COMPARATIVE BALANCE SHEET

AS OF DECEMBER 31, 2020 AND 2019

2020

2019

Cash$1,830

$1,130

Receivables1,770

1,290

Inventory1,620

1,920

Plant assets1,940

1,680

Accumulated depreciation(1,190

)(1,170

)Long-term investments (held-to-maturity)1,300

1,410

$7,270

$6,260

Accounts payable$1,220

$910

Accrued liabilities210

260

Bonds payable1,420

1,530

Common stock1,890

1,710

Retained earnings2,530

1,850

$7,270

$6,260

WHISPERINGCOMPANY

INCOME STATEMENT

FOR THE YEAR ENDED DECEMBER 31, 2020

Sales revenue$7,100

Cost of goods sold4,760

Gross margin2,340

Selling and administrative expenses930

Income from operations1,410

Other revenues and gainsGain on sale of investments80

Income before tax1,490

Income tax expense550

Net income940Cash dividends

260

Income retained in business

$680

Additional information:

During the year, $80of common stock was issued in exchange for plant assets. No plant assets were sold in 2020.

Prepare statement of cash flows using the direct method.