Instant Brake Inc.$$s comparative balance sheet information at December $31,2020$ and $2019,$ and its income statement for the year ended December $31,2020,$ are as follows:

Instant Brake Inc.

Income Statement

December $31,2020$

Sales $ $873,000$

Cost of goods sold $575,000$

Gross profit $ $298,000$

Operating expenses $ $132,710$

Depreciation expense $41,270173,980$

Operating Profit $124,020$

Loss on sale of equipment $9,900$

Investment income $17,020$

Profit before taxes $131,140$

Income taxes $29,000$

Profit $ $102,140$

Instant Brake Inc.

Balance Sheet Information

December $31$

$20202019$ Net Change

Cash $ $47,000$ $ $24,760$ $ $22,240$

Cash equivalents $22,7809,40013,380$

Accounts receivable $88,12036,44051,680$

Inventory $114,04082,52031,520$

Investment $022,780(22,780)$

Land $76,60076,6000$

Building and equipment $431,370448,390(17,020)$

Accumulated depreciation $117,08095,96021,120$

Accounts payable $14,31037,600(23,290)$

Dividends payable $1,000700300$

Bonds payable $23,000023,000$

Preferred shares $81,40081,4000$

Common shares $405,880405,8800$

Retained earnings $137,24079,35057,890$

During $2020,$ the following transactions occurred:

Purchased equipment for $$20,300$ cash.

Sold the investment on January $1,2020,$ for $$39,800,$ resulting in investment income of $$17,020.$

Sold equipment for $$7,270$ cash that had originally cost $$37,320$ and had $$20,150$ of accumulated depreciation.

Issued $$23,000$ of bonds payable at face value.

Other information:

All sales are credit sales.

All credits to accounts receivable in the period are receipts from customers.

All purchases of merchandise are on credit.

All debits to accounts payable in the period result from payments for merchandise.

Other operating expenses are cash expenses.

Income taxes are cash expenses.

Required:

Prepare a statement of cash flows for $2020$ using the direct method to report cash inflows and outflows from operating activities. $($List any deduction in cash and cash outflows as negative amounts.$)$