Problem 4 (20 points) Comparative balance sheets for 2020 and 2019 and an income statement for 2020 are provided below for Boston Industries. Additional information from the accounting records of Boston is provided. Comparative Balance Sheets December 31, 2020 and 2019 ($ in thousands) 2020 2019 Assets: Cash Accounts receivable Inventory Prepaid Insurance Land Building Less: Accumulated depreciation Equipment Less: Accumulated depreciation Patent $ 1,800 1,800 2,700 30 2,025 2,700 (900) 8,550 (1,575) 3,600 $20,730 $ 1.125 1,350 1.575 10 1,800 2,700 (810) 6,750 (1.440) 4.500 $17.560 Liabilities: Accounts payable Accrued operating expenses payable Note Payable - land $ 2,280 900 450 $ 1,360 675 0 Shareholders' Equity: Common stock Paid-in capital excess of par Retained earnings 9,450 2,250 5,400 $20,730 9.000 2,025 4.500 $17.560 Income Statement For year ended December 31, 2020 ($ in thousands) $7,935 270 $8,205 Revenues: Sales revenue Gain on sale of land Expenses: Cost of goods sold Depreciation expense-building Depreciation expense-equipment Loss on sale of equipment Amortization of patent Insurance expense Operating expenses Net income $1,800 90 945 45 900 50 1.450 5,280 $2.925 Additional information from the accounting records: a. During 2020, equipment with a cost of $900,000 (related accumulated depreciation is $810,000) was sold. b. The Retained Earnings account reveals reductions of $675,000 and $1,350,000 for stock dividends and cash dividends, respectively. c. During 2020, land of $450,000 was purchased and a note payable of $450,000 was issued. Required: 1. Determine cash inflows/ (outflows) from operating activities using the direct method (11 points) a. Cash received from customers (2 points) $ b. Cash paid suppliers (4 points) Cash paid for insurance (2 points) d. Cash paid to for operating expenses (2 points) $ e. Net cash flows from operating activities (1 point) Determine cash inflows or cash outflows (negative) from investing activities (7 points) Description Amount Net cash flows from investing activities 2. Determine cash inflows or cash outflows (negative) from financing activities (2 points) Description Amount Net cash flows from financing activities