Instant Brake Inc.'s comparative balance sheet Information at December 31, 2020 and 2 ended December 31, 2020, are as follows: $889,000 566,000 $323,000 Instant Brake Inc. Income Statement December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses $132,620 Depreciation expense 41, 180 Operating Profit Loss on sale of equipment 14,910 Investment income 21,520 Profit before taxes Income taxes Profit 173,800 149,200 155,810 22,000 $133,810 Instant Brake Inc. Balance Sheet Information December 31 2020 2019 Cash $ 38,000 $ 22,960 Cash equivalents 27,280 7,600 Arroints receivable 86 329 27 419 Net Change $ 15,040 19,680 58 880 Balance Sheet Information December 31 2020 2019 Cash $ 38,000 Cash equivalents $ 22,960 27,280 7,600 Accounts receivable 86,320 27,440 Inventory 112,240 73,520 Investment Land 27,280 74,800 74,800 Building and equipment 403, 580 425,100 Accumulated depreciation 108,050 86,960 Accounts payable 5,850 35,800 Dividends payable 2,400 1,600 Bonds payable 14,000 Preferred shares 79,600 79,600 Common shares 404,080 494,080 Retained earnings 128,240 50,660 Net Change $ 15,040 19,680 58,880 38,720 27,280) (21,520) 21, 090 (29,950) 800 14,000 77,580 During 2020, the following transactions occurred: 1. Purchased equipment for $21,200 cash 2. Sold the investment on January 1, 2020, for $48,800, resulting in Investment income of $21,520. 3. Sold equipment for $7.720 cash that had originally cost $42.720 and had $20,090 of accumulated depreciation 4. Issued $14,000 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, 2020, using the indirect me deduction 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 Adjustments to reconcile profit to net cash inflows from operating activiti ces Cash flows from investing activities: Cash flows from investing activities: Cash flows from financing activities