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 StatementDecember 31, 2023Sales $883,000 Cost of goods sold 581,000 Gross profit $302,000 Operating expenses$132,770 Depreciation expense 41,330 174,100 Operating Profit 127,900 Loss on sale of equipment 6,510 Investment income 14,020 Profit before taxes 135,410 Income taxes 23,000 Profit $112,410

Instant Brake Inc.Balance Sheet Information December 31 20232022Net ChangeCash$53,000 $25,960 $27,040 Cash equivalents 19,780 10,600 9,180 Accounts receivable 89,320 42,440 46,880 Inventory 115,240 88,520 26,720 Investment 0 19,780 (19,780)Land 77,800 77,800 0 Building and equipment 453,530 467,550 (14,020)Accumulated depreciation 130,050 108,960 21,090 Accounts payable 14,500 38,800 (24,300)Dividends payable 2,200 1,100 1,100 Bonds payable 29,000 0 29,000 Preferred shares 82,600 82,600 0 Common shares 407,080 407,080 0 Retained earnings 143,240 94,110 49,130

During 2023, the following transactions occurred:

1. Purchased equipment for $19,700 cash.
2. Sold the investment on January 1, 2023, for $33,800, resulting in investment income of $14,020.
3. Sold equipment for $6,970 cash that had originally cost $33,720 and had $20,240 of accumulated depreciation.
4. Issued $29,000 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.)