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: ook $877,000 572,000 $305,000 mint rences Instant Brake Inc. Income Statement December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses $132,689 Depreciation expense 41,240 Operating Profit Loss on sale of equipment 11,580 Investment income 18,52e Profit before taxes Income taxes Profit 173,920 131,080 138,020 16,000 $122,020 Instant Brake Inc. Balance Sheet Information December 31 2020 2019.Net Change Cash $ 44,000 $ 24,160 $ 19,840 Cash equivalents 24,280 8 ,800 15,480 Accounts receivable 87.57033.440 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 44,000 $ 24,160 Cash equivalents 24,280 8,800 Accounts receivable 87,520 33,440 Inventory 113,440 79,520 Investment 24,280 Land 76,000 76,000 Building and equipment 423,240 441,760 Accumulated depreciation 114,080 92,960 Accounts payable 12,480 37,000 Dividends payable 1,600 1,000 Bonds payable 20,000 Preferred shares 80,800 80,800 Common shares 405,280 485,280 Retained earnings 134,240 70,920 Net Change $ 19,840 15,480 54,080 33,920 (24,280) (18,520) 21,120 (24,520) 600 20,000 63,320 During 2020, the following transactions occurred. 1. Purchased equipment for $20,600 cash. 3. Sold equipment for $7.420 cash that had originally cost $39.120 and had $20,120 of accumulated depreciation. 4. Issued $20,000 of bonds payable at face value Other Information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. C. All purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise e. Other operating expenses are cash expenses 1. 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 any deduction in cash and cash outflows os negative amounts.) INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities Cash flows from investing activities Prev 4 of 4 ! Next Cash flows from investing activities. Cash flows from financing activities