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 $ $881,000$

Cost of goods sold $580,000$

Gross profit $ $301,000$

Operating expenses $ $132,760$

Depreciation expense $41,320174,080$

Operating Profit $126,920$

Loss on sale of equipment $5,970$

Investment income $13,520$

Profit before taxes $134,470$

Income taxes $22,000$

Profit $ $112,470$

Instant Brake Inc.

Balance Sheet Information

December $31$

$20232022$ Net Change

Cash $ $52,000$ $ $25,760$ $ $26,240$

Cash equivalents $19,28010,4008,880$

Accounts receivable $89,12041,44047,680$

Inventory $115,04087,52027,520$

Investment $019,280(19,280)$

Land $77,60077,6000$

Building and equipment $450,420463,940(13,520)$

Accumulated depreciation $125,050103,96021,090$

Accounts payable $16,89038,600(21,710)$

Dividends payable $2,0001,0001,000$

Bonds payable $28,000028,000$

Preferred shares $82,40082,4000$

Common shares $406,880406,8800$

Retained earnings $142,24093,10049,140$

During $2023,$ the following transactions occurred:

Purchased equipment for $$19,600$ cash.

Sold the investment on January $1,2023,$ for $$32,800,$ resulting in investment income of $$13,520.$

Sold equipment for $$6,920$ cash that had originally cost $$33,120$ and had $$20,230$ of accumulated depreciation.

Issued $$28,000$ 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.$)$