Instructions: Prepare a statement of cash flows for Hopkins Company using the indirect method, as per the information given below.The comparative balance sheets of Hopkins Company for December 31, 2020 and 2019 are shown below:12/31/202012/31/2019AssetsCash$155,000$150,000Accounts receivable 450,000 400,000Inventories 770,000 750,000Investments (long-term) 0 100,000Land 500,000 0Equipment 1,400,000 1,200,000Accumulated depreciation--equipment (600,000) (500,000)Total Assets $2,675,000 $2,100,000 Liabilities and Stockholders EquityAccounts payable$340,000$300,000Accrued expenses payable 45,000 50,000Dividends payable 30,000 25,000Common stock 900,000 775,000Retained earnings 1,360,000 950,000Total Liabilities and Stockholders' Equity $2,675,000 $2,100,000Additional data obtained from an examination of the accounts in the ledger for 2020 are as follows:1) The investments were sold for $175,000 cash. (hint: calculate the gain/loss on sale)2) Equipment and land were acquired for cash.3) There were no disposals of equipment during the year.4) The common stock was issued for cash.5) Net income for the year was $500,000.6) Cash Dividends paid were $85,000. Hopkins CompanyStatement of Cash FlowsFor the Year Ended December 31, 2020Cash at beginning of year:$____________Cash flows from operating activities:Net Income$___________Adjustments to reconcile net incometo net cash flow from operating activities:Depreciation*____________Gain on sale of investments**____________Changes in current operating assetsand liabilities:Increase in accounts receivable_____________Increase in inventories_____________Increase in accounts payable_____________ Decrease in accrued expenses_____________Net cash flow from operating activities_____________Cash flows from (used for) investing activities:Cash from sale of investments____________Cash used for purchase of land____________Cash used for purchase of equipment____________Net cash flow used for investing activities_____________Cash flows from (used for) financing activities:Cash from issuance of common stock____________Cash used to pay dividends____________Net cash flow from financing activities_____________Cash at end of year_____________Net change in cash_____________*Accumulated Depreciation: $600,000 - $500,000 = **Gain on sale of investments = $175,000 - $100,000 =