Preparing a statement of Cash Flows-Indirect Method Sterling Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 2019 2020 Difference Assets Cash and cash equivalents $ 47,600 $ 46,900 5 (700) Accounts receivable (net) 16,800 23,800 7.000 Inventory 22,400 19,600 (2.800) Investment, long-term 8,400 0 (8,400) Fixed assets 112.000 137,200 25.200 Accumulated depreciation (67,200) (54,600) 12,600 Total assets $140,000 $172.900 $32.900 Liabilities and Stockholders' Equity Accounts payable $26,600 $16,800 $19.800) Bonds payable 14,000 42,000 28.000 Common stock, no-par 70.000 91.000 21,000 Retained earnings 29,400 39.200 9,800 Treasury stock 0 (16,100) (16,100) Total liabilities and stockholders equity $140,000 $172,900 $32.900 Income Statement, For Year Ended December 31 2020 Sales revenue $98,000 Cost of goods sold (58,800) Gross margin 39,200 Depreciation expense (7.000) Other operating expenses (25.200) Gain on sale of investments 4.200 Loss on sale of fixed assets (1,400) Net income $9.800 Analysis of selected accounts and transactions 1. Sold fixed assets for cash: cost, $29,400, and two-thirds depreciated. 2. Purchased fixed assets for cash, $12,600. 3. Purchased fixed assets; exchanged unissued bonds of $42,000 (face value and fair value) in payment. 4. Sold the long-term investments for cash. Assume carrying value of the investment is equal to its original purchase price. 5. Purchased treasury stock for cash, $16,100. 6. Retired bonds payable at maturity date by issuing common stock, $14,000. 7. Sold unissued common stock for cash, $7,000. Required Prepare the statement of cash flows for Sterling Corporation for the year ended December 31, 2020, assuming the indirect method in presenting cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income Adjustments $ Depreciation expense Gain on sale of long-term investments Increase in accounts receivable.net Decrease in inventory Decrease in accounts payable Net cash provided (used) by operating activities Cash flows from investing activities Sale of fixed assets Sale of long-term investment Net cash provided (used) by investing activities Cash flows from financing activities Issue common stock Net cash provided (used) by financing activities Net increase in cash and cash equivalents during 2020 Cash and cash equivalents, January 1, 2020 Cash and cash equivalents, December 31, 2020 Noncash Disclosure $ Retired bonds payable with common stock $ $