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: $887,000 567,000 $320,000 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 $132,630 41,190 173,820 146, 180 14,380 21,020 152,820 21,000 $131,820 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 39,000 $ 23,160 Cash equivalents 26,780 7,800 Accounts receivable 86,520 28,440 Inventory 112,440 74,520 Investment 26,780 Land 75,000 75,000 Building and equipment 406,690 427, 710 Accumulated depreciation 109,080 87,960 Accounts payable 6,430 36,000 Dividends payable 2,600 1,500 Bonds payable 15,000 Preferred shares 79,800 79, 800 Common shares 404,280 404,280 Retained earnings 129,240 53,870 Net Change $ 15,840 18,980 58,080 37,920 (26,780) 0 (21,020) 21,120 (29,570) 1,100 15,000 75,370 During 2020, the following transactions occurred: 1. Purchased equipment for $21,100 cash. 2. Sold the investment on January 1, 2020, for $47,800, resulting in investment income of $21,020. 3. Sold equipment for $7,670 cash that had originally cost $42,120 and had $20,070 of accumulated depreciation. 4. Issued $15,000 of bonds payable at face value. 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