Instant Brake Inc.'s comparative balance sheet information at December 31, 2020 and 2019, and its income statement ended December 31, 2020, are as follows: $887,000 583,000 $304,000 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 $132,790 41,350 174,140 129,860 7,590 15,020 137,290 25,000 $112,290 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 55,000 $ 26, 360 Cash equivalents 20,780 11,000 Accounts receivable 89, 720 44,440 Inventory 115,640 90,520 Investment 0 20,780 Land 78,200 78, 200 458,250 473,270 Building and equipment 137,050 Accumulated depreciation 115,960 11,220 39,200 Accounts payable Dividends payable 2,600 1,300 Net Change $ 28,640 9,780 45, 280 25, 120 20,780) 0 (15,020) 21,090 (27,980) 1,300 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 55,000 $ 26, 360 Cash equivalents 20,780 11,000 Accounts receivable 89,720 44,440 Inventory 115,640 90,520 Investment 20, 780 Land 78, 200 78,200 Building and equipment 458,250 473, 270 Accumulated depreciation 137,050 115,960 Accounts payable 11,220 39,200 Dividends payable 2,600 1,300 Bonds payable 31,000 Preferred shares 83,000 83,000 Common shares 407,480 407, 480 Retained earnings 145,240 97,630 Net Change $ 28,640 9,780 45,280 25, 120 20,780) 0 (15,020) 21,090 (27,980) 1,300 31,000 0 47,610 During 2020, the following transactions occurred: 1. Purchased equipment for $19,900 cash. 2. Sold the investment on January 1, 2020, for $35,800, resulting in investment income of $15,020. 3. Sold equipment for $7,070 cash that had originally cost $34,920 and had $20,260 of accumulated depreciation 4. Issued $31,000 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 indirec deduction in cash and cash outflows as negative amounts.) Answer is not complete. INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Profit Adjustments to reconcile profit to net cash inflows from operating activities: Increase in accounts receivable Increase in inventory Decrease in accounts payable Depreciation expense Gain on sale of investment (45,280) (25,120) (27,980) 41,350 (57,030) Net cash inflow from operating activities Cash flows from investing activities: Proceeds from sale of equipment Purchase of equipment Proceeds from sale of investment $ 7,070 (19,900) 35.800 Gain on sale of investment $ (57,030) Net cash inflow from operating activities Cash flows from investing activities: Proceeds from sale of equipment Purchase of equipment Proceeds from sale of investment 9000 | 7,070 (19,900) 35,800 22,970 Cash flows from financing activities: Payment of dividend Issuance of bonds payable Net cash outflow from financing activities Net increase in cash and cash equivalents Cash and cash equivalents, January 1, 2020 Cash and cash equivalents, December 31, 2020 **** $ 0