Sarasota Inc., a greeting card company, had the following statements prepared as of December 31,2020 . Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock, $10 par Contributed capital, common stock Retained earnings Total liabilities \& stockholders' equity \begin{tabular}{rr} $46,500 & $40,200 \\ \hline 4,100 & 6,000 \\ 8,100 & 4,000 \\ 7,900 & 10,000 \\ 60,200 & 68,700 \\ 100,000 & 100,000 \\ 30,000 & 30,000 \\ 55,600 & 34,900 \\ \hline$312,400 & $293,800 \\ \hline \end{tabular} SARASOTAINC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue Cost of goods sold Gross profit $338,750176,400162,350 Operating expenses Operating income 42,750119,600 Interest expense $11,500 GainonsaleofequipmentIncomebeforetax2,0009,50033,250 Income tax expense Net income 6,650$26,600 Additional information: 1. Dividends in the amount of $5,900 were declared and paid during 2020. 2. Depreciation expense and amortization expense are included in operating expenses. 3. No unrealized gains or losses have occurred on the investments during the year. 4. Equipment that had a cost of $19,900 and was 70% depreciated was sold during 2020 . Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease with either a-sign eg. 15,000 or in parenthesis eg. (15,000).) SARASOTA INC. Statement of Cash Flows - For the Year Ended December 31, 2020 Cash Flows from Operating Activities Cash Received from Customers $ Cash Payments to Suppliers $ Cash Payments for Operating Expenses Cash Payments for Interest Cash Payments for Income Taxes Net CashProvided by Operating Activities Net Cash Provided by Operating Activities Cash Flows from Imvesting Activities Sale of Equipment Purchase of Investments Purchase of Equipment Net Cash Used by Irvesting Activities Cash Flows from Financing Activities Principal Payment on Short-term Loan Principal Payment on Long term Loan Dividend Payments Net Cash Used by Financing Activities Net Decrease in Cash Cashat Beginning of Period Cashat End of Period $1