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: $885,000 568,000 $317,000 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 $132,640 41,200 173,840 143, 160 13,820 20,52 149,860 20,000 $129,860 Net Change $ 16,640 18,280 57,280 37,120 (26,280) Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 40,000 $ 23,360 Cash equivalents 26,280 8,000 Accounts receivable 86,720 29,440 Inventory 112,640 75,520 Investment 0 26, 280 Land 75,200 75,200 Building and equipment 412,400 432,920 Accumulated depreciation 110,080 88,960 Accounts payable 10,040 36,200 Dividends payable 2,400 1,400 Bonds payable 16,000 Preferred shares 80,000 80,000 Common shares 404,480 404,480 Retained earnings 130,240 (20,520) 21,120 (26,160) 1,000 16,000 59,689 70,560 During 2020, the following transactions occurred: 1. Purchased equipment for $21,000 cash. 2. Sold the investment on January 1, 2020, for $46,800, resulting in investment income of $20,520. 3. Sold equipment for $7,620 cash that had originally cost $41,520 and had $20,080 of accumulated depreciation. 4. Issued $16,000 of bonds payable at face value. 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.) 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: Cash flows from investing activities: Cash flows from financing activities