Preparing Statement of Cash Flows Pier2 Inc. reported the following comparative balance sheets for the current year. Balance Sheets January 1 December 31 Cash $8,000 $19,500 Restricted cash 2,000 2,000 Accounts receivable 6,000 4,000 Equipment 18,000 30,000 Accumulated depreciation (2,000) (4,000) Total assets $32,000 $51,500 Salaries payable $2,000 $4,000 Long-term notes payable 10,000 10,000 Capital stock 16,000 16,000 Retained earnings 4,000 21,500 Total liabilities and stockholders' equity $32,000 $51,500 Additional information 1. Net income for the current year was $20,000. 2. No disposals of equipment took place during the year. Required Prepare the statement of cash flows following the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments: Decrease in accounts receivable Increase in salaries payable Net cash provided (used) by operating activities Cash flows from investing activities Net cash provided (used) by investing activities Cash flows from financing activities Net cash provided (used) by financing activities Net increase in cash and restricted cash during year Cash and restricted cash, January 1, 2020 Cash and restricted cash, December 31, 2020