Union Brake Inc.s comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended December 31, 2017, are as follows:

Union Brake Inc.
Income Statement
For Year Ended December 31, 2017
Sales				$	889,000
Cost of goods sold					566,000
Gross profit				$	323,000
Operating expenses	$	132,620
Depreciation expense		41,180			173,800
Operating Profit					149,200
Loss on sale of equipment		14,940
Investment income		21,520
Profit before taxes					155,780
Income taxes					22,000
Profit					133,780

Union Brake Inc.
Balance Sheet Information
	December 31
	2017			2016			Net Change
Cash	$	38,000		$	22,960		$	15,040
Cash equivalents		27,280			7,600			19,680
Accounts receivable		86,320			27,440			58,880
Inventory		112,240			73,520			38,720
Investment		0			27,280			(27,280)
Land		74,800			74,800			0
Building and equipment		403,580			425,100			(21,520)
Accumulated depreciation		108,080			86,960			21,120
Accounts payable		5,820			35,800			(29,980)
Dividends payable		2,400			1,600			800
Bonds payable		14,000			0			14,000
Preferred shares		79,600			79,600			0
Common shares		404,080			404,080			0
Retained earnings		128,240			50,660			77,580

During 2017, the following transactions occurred: 1. Purchased equipment for $21,200 cash. 2. Sold the long-term investment on January 1, 2017 for $48,800, resulting in investment income of 21,520. 3. Sold equipment for $7,720 cash that had originally cost $42,720 and had $20,060 of accumulated depreciation. 4. Issued $14,000 of bonds payable at face value.

Required: 1. How much cash was paid in dividends?

2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

UNION BRAKE INC.
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities:
Adjustments to reconcile profit to net cash inflows from operating activities:
		$0
Cash flows from investing activities:
		0
Cash flows from financing activities:
		0
		$0