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: $875,000 577,000 $298,000 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 takes Income taxes Profit $132.730 41,290 174,020 123,980 4,350 12,020 131,650 19.000 $112,650 Instant Brake Inc. Balance Sheet Information December 31 2828 2019 Cash $ 49,888 $ 25,160 Cash equivalents 17,780 9,808 Accounts receivable 88,520 38,448 Inventory 114,440 84,520 Investment @ 17,780 Land 77,000 77,88 Building and equipment 447,890 459, 110 Accumulated depreciation 122,05 100,960 Accounts payable 18,060 38,000 Dividends payable 1,400 780 Bonds payable 25,000 e Preferred shares 81,800 81,800 Common shares 406,280 406,280 Retained earnings 139,240 84,079 Net Change $ 23,840 7,980 50,880 29,920 17,780) B (12,020) 21,098 (19,940) 700 25,000 e 55.170 During 2020, the following transactions occurred: 1. Purchased equipment for $19,300 cash 2. Sold the investment on January 1, 2020, for $29.800. resulting in investment income of $12,020 3. Sold equipment for $6770 cash that had onginally cost $31320 and had $20.200 of accumulated depreciation 4. Issued $25,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid Pray 1015 Next 2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (Lisu 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 profit to net cash inflows from operating activities: 0 Cash flows from investing activities