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: Instant Brake Inc Income Statement December 31, 2020 Sales 5 577.000 Cost of goods sold 572.000 Gross profit $305.000 Operating expenses $ 132.680 Depreciation expense 41.200 173.900 Operating Profit 131.050 Loss on sale of equipment 11.580 Investint income 18.520 Profit before taxes 138.000 Income taxes 16.000 Profit $122.000 Cash Cash equivalents Accounts receivable Inventory Investment Land Building and equipment Accumulated depreciation Accounts payable Dividends payable Bonds payable Preferred shares Common shares Retained earnings Instant Brake Inc. Balance Sheet Information December 31 2020 2019 $ 44,000 $ 24, 160 24, 280 8, 800 87,520 33, 440 113, 440 79,520 0 24, 280 76,000 76,000 423, 240 441, 760 114, 080 92, 960 12, 480 37,000 1,600 1,000 20,000 0 80, 800 80, 800 405, 280 405, 280 134, 240 70, 920 Net Change $ 19, 840 15, 480 54, 080 33, 920 (24,280 0 (18,520) 21, 120 (24.520 600 20,000 0 0 63,320 During 2020, the following transactions occurred: 1. Purchased equipment for $20,600 cash. 2. Sold the investment on January 1, 2020, for $42,800, resulting in investment income of $18,520. 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. 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: S 0 4 Cash flows from investing activities: 0 Cash flows from financing activities: 0 $ 0