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: $887,000 583,000 $304,000 Instant Brake Inc. Income Statement December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Operating Profit Loss on sale of equipment Investment income Profit before taxes Income taxes Profit $132,790 41,350 174, 140 129,860 7,620 15,020 137,260 25,000 $112,260 Instant Brake Ine. Balance sheet Information December 31 2020 2019 Cash $ 55,000 $ 26,360 Cash equivalents 20.780 11,000 Accounts receivable 89, 720 44, 440 Inventory 115,640 90,520 Investment 0 20,780 78,200 78,200 Building and equipment 458,250 473, 270 Accumulated depreciation 137,080 115,960 Accounts payable 11,190 39,200 Dividends payable 2,600 1,300 Bonds payable 31,000 0 Proferred whare 83,000 83,000 Common shares 407,480 407,480 Retained earnings 145, 240 97,630 Land Net Change $ 28,640 9,780 45,280 25,120 (20,780) 0 (15,0201 21,120 (28,010) 1,300 31,000 0 47,610 During 2020, the following transactions occurred: 1. Purchased equipment for $19,900 cash. 2. Sold the investment on January 1, 2020, for $35,800, resulting in investment income of $15,020. 3. Sold equipment for $7,070 cash that had originally cost $34,920 and had $20,230 of accumulated depreciation 4. Issued $31,000 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. f. 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.) INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: $ 0 Cash flows from investing activities: 0 Cash flows from financing activities: $ 0