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				$	887,000
Cost of goods sold					583,000
Gross profit				$	304,000
Operating expenses	$	132,790
Depreciation expense		41,350			174,140
Operating Profit					129,860
Loss on sale of equipment		7,590
Investment income		15,020
Profit before taxes					137,290
Income taxes					25,000
Profit				$	112,290

Instant Brake Inc.
Balance Sheet Information
	December 31
	2023			2022			Net Change
Cash	$	55,000		$	26,360		$	28,640
Cash equivalents		20,780			11,000			9,780
Accounts receivable		89,720			44,440			45,280
Inventory		115,640			90,520			25,120
Investment		0			20,780			(20,780	)
Land		78,200			78,200			0
Building and equipment		458,250			473,270			(15,020	)
Accumulated depreciation		137,050			115,960			21,090
Accounts payable		11,220			39,200			(27,980	)
Dividends payable		2,600			1,300			1,300
Bonds payable		31,000			0			31,000
Preferred shares		83,000			83,000			0
Common shares		407,480			407,480			0
Retained earnings		145,240			97,630			47,610

During 2023, the following transactions occurred:

1. Purchased equipment for $19,900 cash.
2. Sold the investment on January 1, 2023, 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?

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.)