Instant Brake Inc.s comparative balance sheet information at December 31, 2023 and 2022, and its income statement for the year ended December 31, 2023, are as follows: Instant Brake Inc. Income Statement December 31, 2023 Sales $ 873,000 Cost of goods sold 575,000 Gross profit $ 298,000 Operating expenses $ 132,710 Depreciation expense 41,270 173,980 Operating Profit 124,020 Loss on sale of equipment 9,870 Investment income 17,020 Profit before taxes 131,170 Income taxes 29,000 Profit $ 102,170 Instant Brake Inc. Balance Sheet Information December 31 2023 2022 Net Change Cash $ 47,000 $ 24,760 $ 22,240 Cash equivalents 22,780 9,400 13,380 Accounts receivable 88,120 36,440 51,680 Inventory 114,040 82,520 31,520 Investment 0 22,780 (22,780 ) Land 76,600 76,600 0 Building and equipment 431,370 448,390 (17,020 ) Accumulated depreciation 117,050 95,960 21,090 Accounts payable 14,340 37,600 (23,260 ) Dividends payable 1,000 700 300 Bonds payable 23,000 0 23,000 Preferred shares 81,400 81,400 0 Common shares 405,880 405,880 0 Retained earnings 137,240 79,350 57,890 During 2023, the following transactions occurred: Purchased equipment for $20,300 cash. Sold the investment on January 1, 2023, for $39,800, resulting in investment income of $17,020. Sold equipment for $7,270 cash that had originally cost $37,320 and had $20,180 of accumulated depreciation. Issued $23,000 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, 2023, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.) PrevQuestion 2 of 6 Total2 of 6Visit question mapNext