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.
Income Statement
December 31, 2020
Sales				$	893,000
Cost of goods sold					586,000
Gross profit				$	307,000
Operating expenses	$	132,820
Depreciation expense		41,380			174,200
Operating Profit					132,800
Loss on sale of equipment		9,210
Investment income		16,520
Profit before taxes					140,110
Income taxes					28,000
Profit				$	112,110

Instant Brake Inc.
Balance Sheet Information
	December 31
	2020			2019			Net Change
Cash	$	58,000		$	26,960		$	31,040
Cash equivalents		22,280			11,600			10,680
Accounts receivable		90,320			47,440			42,880
Inventory		116,240			93,520			22,720
Investment		0			22,280			22,280	)
Land		78,800			78,800			0
Building and equipment		461,580			478,100			(16,520	)
Accumulated depreciation		140,050			118,960			21,090
Accounts payable		10,050			39,800			(29,750	)
Dividends payable		3,200			600			2,600
Bonds payable		34,000			0			34,000
Preferred shares		83,600			83,600			0
Common shares		408,080			408,080			0
Retained earnings		148,240			107,660			40,580

During 2020, the following transactions occurred:

1. Purchased equipment for $20,200 cash.
2. Sold the investment on January 1, 2020, for $38,800, resulting in investment income of $16,520.
3. Sold equipment for $7,220 cash that had originally cost $36,720 and had $20,290 of accumulated depreciation.
4. Issued $34,000 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, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)