Comparative balance sheet accounts of Flounder Inc. are presented below. FLOUNDER INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,300 $33,500 Accounts Receivable 70,600 59,900 Inventory 30,300 24,000 Equity investments 22,300 38,200 Machinery 29,900 18,700 Buildings 67.300 56,200 Land 7,600 7,600 $270,300 $238,100 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $2,300 5,700 13,600 35,000 3,400 21,100 150,000 39.200 $270,300 $1,500 2,300 9,100 24,800 2,600 31,000 125,000 41,800 $238,100 MacBook Pro Additional data (ignoring taxes): 1. 2 3. Net income for the year was $43.700 Cash dividends declared and paid during the year were $21,300. 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 $25,000 were sold during the year for $28,700. No unrealized gains and losses were recorded on these investments in 2020. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2.150. 4. 5. Flounder's 2020 Income statement follows (ignoring taxes). Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,650 depreciation and $5.824 bad debts) Income from operations Other: Gain on sale of investments Loss on sale of machinery Net income $543,500 382,600 160,900 120,100 40,800 $3.700 (8002 2.900 $43,700 (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e... 45 or parentheses e.s. (451) Net cash flow from operating activities $ 7 12 (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 parenthesis es. (15,000).) FLOUNDER INC. Statement of Cash Flows (Indirect Method) Adjustments to reconcile net income to : Question 9 of 9 . : . . $