RIVERBED INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,500 $33.400 Accounts Receivable 69,800 59,700 Inventory 30,200 23.900 Equity investments 22,100 38.400 Machinery 29,900 18,600 Buildings 66,900 56,300 Land 7,600 7.800 $269,000 $237.900 Credit Accounts Allowance for Doubtful Accounts $2,200 $1.500 5,700 2,200 13,300 9,100 Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable 34,900 24,600 3,400 2.500 20,900 31,300 Common Stock, no-par 150,000 125.000 Retained Earnings 38,600 41.700 $269,000 $237.900 Additional data Ginoring taxes): 1 2. 3. Net income for the year was $42.800. Cash dividends declared and paid during the year were $20,900. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. Equity investments (level of ownership is less than 20%) that cost $24,800 were sold during the year for $28,600. No unrealized gains and losses were recorded on these investments in 2020. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. 4. 5. Riverbed's 2020 income statement follows lignoring taxes. Sales revenue $539,500 Less: Cost of goods sold 379,200 160,300 Gross margin Less: Operating expenses (includes $8,450 depreciation and $5,707 bad debts) Income from operations 120,500 39,800 Other: Gain on sale of investments $3,800 Loss on sale of machinery 1900) 3,000 Net income $42,800 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number eg -45 or parentheses es (450) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a-signes -15,000 or in parenthesiseg. (15.0000 RIVERBED INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net Income to >