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: 11 $879,000 571,000 $308,000 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 $132,670 41,230 173,900 134,100 12,110 19,020 141,010 17,000 $124,010 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 43,000 $ 23,960 Cash equivalents 24,780 8,600 Accounts receivable 87,320 32,440 Inventory 113,240 78,520 Investment 0 24,780 Land 75,800 75,800 Building and equipment 420,530 439,550 Accumulated depreciation 113,050 91,960 Accounts payable 11,900 36,800 Dividends payable 1,800 1,100 Bonds payable 19,000 0 Preferred shares 80,600 80,600 Common shares 405,080 405.080 Net Change $ 19,040 16,180 54, 880 34, 720 24,780) 0 (19,020) 21,090 (24,900) 700 19,000 0 During 2020, the following transactions occurred: 1. Purchased equipment for $20,700 cash. 2. Sold the investment on January 1, 2020, for $43,800, resulting in investment income of $19,020. 3. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,140 of accumulated depreciation. 4. Issued $19,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid 2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (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: Adjustments to reconcile profitto net cash inflows from operating activities