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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
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. ts Income Statement December 31, 2020 Sales Skipped Cost of goods sold Book Print erences Gross profit Operating expenses Depreciation expense Operating Profit Loss on sale of equipment Investment income Profit before taxes Income taxes Profit Cash Cash equivalents Accounts receivable Inventory 5879,000 $79,000 $300,000 $132,750 41,310 174,060 125,940 5,430 13,020 133,530 21,000 $112,530 Instant Brake Inc. Balance Sheet Information. December 31 2020 2019 Net Change $ 51,000 18,780 88,920 $ 25,560 $ 25,440 10,200 8,580 40,440 48,480 114,840 86,520 28,320 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 $ 51,000 $ 25,560 Net Change Cashi Cash equivalents: $ 25,440 18,780 10,200 8,580 Accounts receivable. 88,920 40,440 48,480 Inventory 114,840 86,520 28,320 Investment 0 18,780 18,780) Land 77,400 77,400 Building and equipment 449,310 462,330 Accumulated depreciation 124,050 102,960 (13,020) 21,090 Accounts payable. 17,280 38,400 (21,120) Dividends payable 1,800 900 900 Bonds payable 27,000 0 27,000 Preferred shares 82,200 82,200 Common shares 406,680 406,680 Retained earnings 141,240 90,090 51,150 During 2020, the following transactions occurred: 1. Purchased equipment for $19.500 cash. 2. Sold the investment on January 1, 2020, for $31,800, resulting in investment income of $13,020. 3. Sold equipment for $6,870 cash that had originally cost $32.520 and had $20,220 of accumulated depreciation. 4. Issued $27,000 of bonds payable at face value. Deind 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.) Cash flows from operating activities: INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Adjustments to reconcile profit to net cash inflows from operating activities: 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.) Cash flows from operating activities: INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Adjustments to reconcile profit to net cash inflows from operating activities Cash flows from investing activities $ 0 Cash flows from investing activities: Cash flows from financing activities: $ $ 0
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