Sarasota Company has not yet prepared a statement of cash flows for the 2020 fiscal year. Comparative balance sheets as of December 31, 2019 and 2020, and a statement of income and retained earnings for the year ended December 31, 2020, are presented as follows.

SARASOTA COMPANY STATEMENT OF INCOME AND RETAINED EARNINGS FOR THE YEAR ENDED DECEMBER 31, 2020 ($000 OMITTED)
Sales revenue				$3,770
Expenses
Cost of goods sold		$1,210
Salaries and benefits		710
Heat, light, and power		70
Depreciation		70
Property taxes		20
Patent amortization		30
Miscellaneous expenses		10
Interest		30		2,150
Income before income taxes				1,620
Income taxes				810
Net income				810
Retained earningsJan. 1, 2020				310
				1,120
Stock dividend declared and issued				590
Retained earningsDec. 31, 2020				$530

SARASOTA COMPANY COMPARATIVE BALANCE SHEETS AS OF DECEMBER 31 ($000 OMITTED)
Assets		2020			2019
Current assets
Cash		$268			$20
U.S. Treasury notes (available-for-sale)		10			50
Accounts receivable		780			510
Inventory		710			570
Total current assets		1,768			1,150
Long-term assets
Land		160			70
Buildings and equipment		930			620
Accumulated depreciationbuildings and equipment		(180	)		(110	)
Patents (less amortization)		80			110
Total long-term assets		990			690
Total assets		$2,758			$1,840
Liabilities and Stockholders Equity
Current liabilities
Accounts payable		$402			$300
Income taxes payable		36			30
Notes payable		320			320
Total current liabilities		758			650
Long-term notes payabledue 2022		190			190
Total liabilities		948			840
Stockholders equity
Common stock		1,280			690
Retained earnings		530			310
Total stockholders equity		1,810			1,000
Total liabilities and stockholders equity		$2,758			$1,840

Prepare a statement of cash flows using the direct method. Changes in accounts receivable and accounts payable relate to sales and cost of goods sold