HEADLAND INC. COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019, 12/31/2012/31/19 Cash $6,100 $7,000 Accounts receivable 61,600 51,500 Short-term debt investments (available-for-sale) 34,900 18,100 Inventory 39,900 60,400 Prepaid rent 5,000 4,100 Equipment 154,100 130,300 Accumulated depreciation equipment (35,000) (24,900) Copyrights 45,500 50,500 Total assets $312,100 $297,000 Accounts payable $45,800 $39,900 Income taxes payable 4,000 6,000 Salaries and wages payable 8,100 4,000 Short-term loans payable 7,900 10,000 Long-term loans payable 60,500 69,300 Common stock, $10 par 100,000 100,000 Contributed capital, common stock 30,000 30,000 Retained earnings 55,800 37,800 Total liabilities & stockholders' equity $312,100 $297,000 HEADLAND INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $333,000 Cost of goods sold 174,000 Gross profit 159,000 Operating expenses 119,500 Operating income 39,500 Interest expense $11,500 Gain on sale of equipment 2,000 9,500 Income before tax 30,000 Income tax expense 6,000 Net income $24,000 Additional information: 1. Dividends in the amount of $6,000 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $20,100 and was 70% depreciated was sold during 2020. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a - sign e.g.-15,000 or in parenthesis e.g. (15,000).) HEADLAND INC. Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers $ 322900 Cash Payments to Suppliers 147600 Cash Payments for Operating Expenses | -1900 Cash Payments for Interest 3600 Cash Payments for Income Taxes 4140 Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Equipment Purchase of Equipment Purchase of Investments Net Cash Used by Investing Activities | | Cash Flows from Financing Activities | Principal Payment on Short-term Loan 4 Principal Payment on Short-term Loan Al C Principal Payment on Long-term Loan A Dwvidend payments Dividend Payments C Net Cash Used by Financing Activities | Net Decrease in Cash Net Decrease in Cash Cash at Beginning of Period Cash at End of Period $