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: $879,800 571,080 $388,888 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 $ 132,670 41, 238 173,900 134, 188 12,140 19,020 140,988 17, Bee $123, 980 h Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 43, eee $23.960 Cash equivalerits 24,780 8,60e Accounts receivable 87,320 32,440 Inventory 113,240 78,520 Investment 24,78 Land 75,800 75,800 Building and equipent 428,530 439.550 Accumulated depreciation 113,080 91,96 Accounts payable 11,870 36,800 Dividends payable 1.800 1.100 Bonds payable 19.ece e Preferred shares 82,500 80,600 405.080 485,00 Retained earnings 133.240 68, 110 NetChange $ 19,040 16,180 54,880 34,720 (24.780 8 (19.020) (24,930 700 19.000 8 B 35.130 During 2020, the following transactions occurred: 1. Purchased equipment for $20.700 cash. 2 Sold the investment on January 1, 2020, for $43,800, resulting In Investment Income of $19.020. 3. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,110 of accumulated depreciation. 4. Issued $19.000 of bonds payable at face value. Other Information a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c All purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise e. Other operating expenses are cash expenses. f Income taxes are cash expenses. a 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.) Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deducion 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: $ 0 Cash flows from investing activities 0 Cash flows from financing activities 0 0