During 2017, the following transactions occurred: 1. Purchased equipment for $19,500 cash. 2. Sold the long-term investment on January 1, 2017 for $31,800, resulting in investment income of 13,020. 3. Sold equipment for $6,870 cash that had originally cost $32,520 and had $20,190 of accumulated depreciation. 4. Issued $27,000 of bonds payable at face value.

Required: 1. How much cash was paid in dividends?

2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

Union Brake Inc.'s comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended December 31, 2017, are as follows: Union Brake Inc. Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold $879,000 579,000 $300,000 Gross profit Operating expenses Depreciation expense Operating Profit Loss on sale of equipment Investment income $132.750 41,310 174,060 125,940 5,460 13,020 Profit before taxes Income taxes Profit 133,500 21,000 112,500 Net Change $ 25,440 8,580 48,480 28,320 (18,780) Union Brake Inc. Balance Sheet Information December 31 2017 2016 Cash $ 51,000 $25,560 Cash equivalents 18,780 10,200 Accounts receivable 88,920 40,440 Inventory 114,840 86,520 Investment 18,780 Land 77,400 77,400 Building and equipment 449,310 462,330 Accumulated depreciation 124,080 102,960 Accounts payable 17,250 38,400 Dividends payable 1,800 900 Bonds payable 27,000 0 Preferred shares 82,200 82,200 Common shares 406,680 406,680 Retained earnings 141,240 90,090 0 (13,020) 21,120 (21,150) 900 27,000 0 51,150 During 2017, the following transactions occurred: 1. Purchased equipment for $19,500 cash. 2. Sold the long-term investment on January 1, 2017 for $31,800, resulting in investment income of 13,020. 3. Sold equipment for $6,870 cash that had originally cost $32,520 and had $20,190 of accumulated depreciation. 4. Issued $27,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid 2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List any deduction in cash and cash outflows as negative amounts. UNION BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities: Profit Adjustments to reconcile profit to net cash inflows from operating activities: Cash and cash equivalents, December 31, 2017 Purchase of equipment Cash flows from investing activities: Cash flows from financing activities