P23.1B (LO 2,4) (SCF-Indirect Method) The following are Sanibel Corp.'s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020: Additional information: 1. On December 31,2019 , Sanibel acquired 25% of Island Co.'s common stock for $420,000. On that date, the carrying value of Island's assets and liabilities, which approximated their fair values, was $1,680,000. Island reported income of $220,000 for the year ended December 31, 2020. No dividend was paid on Island's common stock during the year. 2. During 2019, Sanibel loaned $500,000 to POI Co., an unrelated company. POI made the first semi-annual principal repayment of $50,000, plus interest at 10%, on December 31, 2019. POI is current on the loan as of December 31, 2020. 3. On January 2, 2020, Sanibel sold equipment costing $100,000, with a carrying amount of $31,000, for $20,000 cash. 4. On December 31, 2020, Sanibel entered into a capital lease for a new factory. The present value of the annual rental payments is $850,000, which equals the fair value of the building. Sanibel made the first rental payment of $120,000 when due on January 2, 2021. 5. Net income for 2020 was $285,000. 6. Sanibel declared and paid cash dividends for 2020 and 2019 as follows: Instructions Prepare a statement of cash flows for Sanibel Corp. for the year ended December 31, 2020, using the indirect method. (AICPA adapted)