Instant Brake Inc.$$s comparative balance sheet information at December $31,2023$ and $2022,$ and its income statement for the year ended December $31,2023,$ are as follows:

Instant Brake Inc.

Income Statement

December $31,2023$

Sales $ $889,000$

Cost of goods sold $584,000$

Gross profit $ $305,000$

Operating expenses $ $132,800$

Depreciation expense $41,360174,160$

Operating Profit $130,840$

Loss on sale of equipment $8,130$

Investment income $15,520$

Profit before taxes $138,230$

Income taxes $26,000$

Profit $ $112,230$

Instant Brake Inc.

Balance Sheet Information

December $31$

$20232022$ Net Change

Cash $ $56,000$ $ $26,560$ $ $29,440$

Cash equivalents $21,28011,20010,080$

Accounts receivable $89,92045,44044,480$

Inventory $115,84091,52024,320$

Investment $021,280(21,280)$

Land $78,40078,4000$

Building and equipment $459,360474,880(15,520)$

Accumulated depreciation $138,050116,96021,090$

Accounts payable $10,83039,400(28,570)$

Dividends payable $2,8001,4001,400$

Bonds payable $32,000032,000$

Preferred shares $83,20083,2000$

Common shares $407,680407,6800$

Retained earnings $146,240100,64045,600$

During $2023,$ the following transactions occurred:

Purchased equipment for $$20,000$ cash.

Sold the investment on January $1,2023,$ for $$36,800,$ resulting in investment income of $$15,520.$

Sold equipment for $$7,120$ cash that had originally cost $$35,520$ and had $$20,270$ of accumulated depreciation.

Issued $$32,000$ of bonds payable at face value.

Required:

$1.$ How much cash was paid in dividends?

$2.$ Prepare a statement of cash flows for Instant Brake for the year ended December $31,2023,$ using the indirect method. $($List any deduction in cash and cash outflows as negative amounts.$)$