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				$	877,000
Cost of goods sold					572,000
Gross profit				$	305,000
Operating expenses	$	132,680
Depreciation expense		41,240			173,920
Operating Profit					131,080
Loss on sale of equipment		11,580
Investment income		18,520
Profit before taxes					138,020
Income taxes					16,000
Profit				$	122,020

Instant Brake Inc.
Balance Sheet Information
	December 31
	2020			2019			Net Change
Cash	$	44,000		$	24,160		$	19,840
Cash equivalents		24,280			8,800			15,480
Accounts receivable		87,520			33,440			54,080
Inventory		113,440			79,520			33,920
Investment		0			24,280			(24,280	)
Land		76,000			76,000			0
Building and equipment		423,240			441,760			(18,520	)
Accumulated depreciation		114,080			92,960			21,120
Accounts payable		12,480			37,000			(24,520	)
Dividends payable		1,600			1,000			600
Bonds payable		20,000			0			20,000
Preferred shares		80,800			80,800			0
Common shares		405,280			405,280			0
Retained earnings		134,240			70,920			63,320

During 2020, the following transactions occurred:

1. Purchased equipment for $20,600 cash.
2. Sold the investment on January 1, 2020, for $42,800, resulting in investment income of $18,520.
3. Sold equipment for $7,420 cash that had originally cost $39,120 and had $20,120 of accumulated depreciation.
4. Issued $20,000 of bonds payable at face value.

Other information:

1. All sales are credit sales.
2. All credits to accounts receivable in the period are receipts from customers.
3. All purchases of merchandise are on credit.
4. All debits to accounts payable in the period result from payments for merchandise.
5. Other operating expenses are cash expenses.
6. Income taxes are cash expenses.

Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.)