Sales Cost of goods sold Gross profit Operating expenses $885,000 568,000 $317,000 $132,640 Depreciation expense 41,200 173,840 Operating profit 143,160 Loss on sale of equipment 13,820 Investment income 20,520 Profit before taxes 149,860 Income taxes 20,000 Profit $129,860 Instant Brake Inc. Balance Sheet Information December 31 Cash 2023 $ 40,000 2022 $ 23,360 Net Change $ 16,640 Cash equivalents 26,280 8,000 18,280 Accounts receivable 86,720 29,440 57,280 Inventory 112,640 75,520 37,120 Investment 0 26,280 (26,280) Land 75,200 75,200 0 Building and equipment 412,400 432,920 (20,520) Accumulated depreciation 110,080 88,960 21,120 Accounts payable 10,040 36,200 (26,160) Dividends payable 2,400 1,400 Bonds payable 16,000 0 1,000 16,000 Preferred shares 80,000 80,000 0 Common shares 404,480 404,480 5 During 2023, the following transactions occurred: 1. Purchased equipment for $21,000 cash. 2. Sold the investment on January 1, 2023, for $46,800, resulting in investment income of $20,520. 3. Sold equipment for $7,620 cash that had originally cost $41,520 and had $20,080 of accumulated depreciation. 4. Issued $16,000 of bonds payable at face value. Required: 1. How much cash was paid in dividends? Dividends paid Cash flows from operating activities: INSTANT BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2023 Adjustments to reconcile profit to net cash inflows from operating activities: Cash flows from investing activities: Cash flows from financing activities: $ 0