1. Presented below are the income statement and balance sheet of Windsor, Inc:

Income Statement 2020

Sales $100

Cost of goods sold 40

Gross profit 60

Operating expense 9

Interest expense 4

Taxes 6

Loss on sale of investment 1

Total expenses 20

Net income 40

Balance Sheet 2020 2019

Cash $10 $2

Accounts receivable 12 10

Inventory 14 20

Prepaid rent 6 4

Investments 6 10

Equipment 20 15

Accumulated depreciation (8) (6)

Total assets 60 55

Accounts Payable 4 3

Taxes payable 3 10

Bonds payable 10 4

Common stock 30 28

Retained earnings 13 10

Total 60 55 CONTINUED

Additional Information

1. Sold investment that cost $4 for $3.
2. Average shares of stock outstanding was $10.
3. Market price of a share of common stock was $20.

Required: Prepare a statement of cash flows using the indirect method for 2020.