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: $864,000 576,000 $288,000 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 $132,720 41,280 174,000 114,000 3,810 11,520 121, 710 18,000 $103,710 Net Change $ 23,040 7,680 50,880 30,720 (17,280) Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 48,000 $ 24,960 Cash equivalents 17,280 9,600 Accounts receivable 88,320 37,440 Inventory 114,240 83,520 Investment 17,280 Land 76,800 76,800 Building and equipment 444,480 456,000 Accumulated depreciation 118,050 96,960 Accounts payable 19,950 37,800 Dividends payable 1,200 600 Bonds payable 24,000 Preferred shares 81,600 81,600 Common shares 406,080 406,080 Retained earnings 138,240 82,560 (11,520) 21,090 (17,850) 600 24,000 55,680 During 2020, the following transactions occurred: 1. Purchased equipment for $19,200 cash. 2. Sold the investment on January 1, 2020, for $28,800, resulting in investment income of $11,520. 3. Sold equipment for $6,720 cash that had originally cost $30,720 and had $20,190 of accumulated depreciation. 4. Issued $24,000 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: Cash flows from investing activities: Cash flows from financing activities