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: $885,000 582,000 $303,000 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 $132,780 41,340 174,120 128,880 7,050 14,520 136,350 24,000 $112,350 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 54,000 $ 26,160 Cash equivalents 20,280 10,800 Accounts receivable 89,520 43, 440 Inventory 115,440 89,520 Investment 0 20, 280 Land 78,000 78,000 Building and equipment 457, 140 471,660 Accumulated depreciation 136,050 Accounts payable 39,000 Dividends payable 2,400 1,200 Bonds payable 30,000 0 Net Change $ 27,840 9,480 46,080 25,920 20,280) LON (14,520) 21,090 (27,390) 1,200 30,000 114,960 11,610 During 2020, the following transactions occurred: 1. Purchased equipment for $19,800 cash. 2. Sold the investment on January 1, 2020, for $34,800, resulting in investment income of $14,520. 3. Sold equipment for $7,020 cash that had originally cost $34,320 and had $20,250 of accumulated depreciation. 4. Issued $30,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid $ 61,530 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. $ 112,350 Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Profit Adjustments to reconcile profit to net cash inflows from operating activities: Depreciation expense Loss on sale of equipment Gain on sale of investment $ 112,350 Cash flows from investing activities: 0 Cash flows from financing activities: 0