Instant Brake Inc.s comparative balance sheet information at December 31, 2023 and 2022, and its income statement for the year ended December 31, 2023, are as follows:

Instant Brake Inc.
Income Statement
December 31, 2023
Sales				$	884,000
Cost of goods sold					574,000
Gross profit				$	310,000
Operating expenses	$	132,700
Depreciation expense		41,260			173,960
Operating Profit					136,040
Loss on sale of equipment		10,430
Investment income		17,520
Profit before taxes					143,130
Income taxes					30,000
Profit				$	113,130

Instant Brake Inc.
Balance Sheet Information
	December 31
	2023			2022			Net Change
Cash	$	46,000		$	24,560		$	21,440
Cash equivalents		23,280			9,200			14,080
Accounts receivable		87,920			35,440			52,480
Inventory		113,840			81,520			32,320
Investment		0			23,280			(23,280	)
Land		76,400			76,400			0
Building and equipment		428,660			446,180			(17,520	)
Accumulated depreciation		116,050			94,960			21,090
Accounts payable		13,730			37,400			(23,670	)
Dividends payable		1,200			800			400
Bonds payable		22,000			0			22,000
Preferred shares		81,200			81,200			0
Common shares		405,680			405,680			0
Retained earnings		136,240			76,540			59,700

During 2023, the following transactions occurred:

Purchased equipment for $20,400 cash.

Sold the investment on January 1, 2023, for $40,800, resulting in investment income of $17,520.

Sold equipment for $7,320 cash that had originally cost $37,920 and had $20,170 of accumulated depreciation.

Issued $22,000 of bonds payable at face value.

Required: 1. How much cash was paid in dividends?

2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2023, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)