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 $ 879,000 Cost of goods sold 571,000 Gross profit $ 308,000 Operating expenses $ 132,670 Depreciation expense 41,230 173,900 Operating Profit 134,100 Loss on sale of equipment 12,140 Investment income 19,020 Profit before taxes 140,980 Income taxes 17,000 Profit $ 123,980 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Net Change Cash $ 43,000 $ 23,960 $ 19,040 Cash equivalents 24,780 8,600 16,180 Accounts receivable 87,320 32,440 54,880 Inventory 113,240 78,520 34,720 Investment 0 24,780 (24,780 ) Land 75,800 75,800 0 Building and equipment 420,530 439,550 (19,020 ) Accumulated depreciation 113,080 91,960 21,120 Accounts payable 11,870 36,800 (24,930 ) Dividends payable 1,800 1,100 700 Bonds payable 19,000 0 19,000 Preferred shares 80,600 80,600 0 Common shares 405,080 405,080 0 Retained earnings 133,240 68,110 65,130 During 2020, the following transactions occurred: Purchased equipment for $20,700 cash. Sold the investment on January 1, 2020, for $43,800, resulting in investment income of $19,020. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,110 of accumulated depreciation. Issued $19,000 of bonds payable at face value. Other information: All sales are credit sales. All credits to accounts receivable in the period are receipts from customers. All purchases of merchandise are on credit. All debits to accounts payable in the period result from payments for merchandise. Other operating expenses are cash expenses. 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.)

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.)