Union Brake Inc.'s comparative balance sheet information at December 31, 2017 and 2016, and its income statement for the year ended Deber 31, 2017, are as follows Union Brake Inc. Income Statement For Year Ended December 31, 2017 $887,000 583,000 3 Cost of goods sold $304,000 Gross profit Operating expenses Depreciation expense Operating Profit Loss on sale of equipment Investment income $132,790 174,140 129,860 7,620 15,020 Profit before taxes Income taxes Profit 137,260 25,000 112,260 0 Union Brake Inc. Balance Sheet Information December 31 2017 Net Change Cash Cash equivalents Accounts receivable Inventory Investment Land Building and equipment Accumulated depreciation Accounts payable Dividends payable Bonds payable $55,000$ 26,360 $ 28,640 11,000 44,440 90,520 20,780 78,200 458,250 473,270(15,020) 115,960 39,200 1,300 20,780 89,720 115,640 9,780 45,280 25,120 (20,780) 78,200 137,080 21,120 (28,010) 1,300 31,000 2,600 31,000 83,000 407,480 145,240 83,000 407,480 97,630 9 Retained earnings 47,610 During 2017, the following transactions occurred 1. Purchased equipment for $19,900 cash 2. Sold the long-term investment on January 1, 2017 for $35,800, resulting in investment income of 15,020 3. Sold equipment for $7,070 cash that had originally cost $34,920 and had $20,230 of accumulated depreciation 4. Issued $31,000 of bonds payable at face value Required: 1. How much cash was paid in dividends? Dividends paid $ 64,650 2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (List a UNION BRAKE INC Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Profit $112,260 Adjustments to reconcile profit to net cash inflows from operating activities Loss on sale of equipment Decrease in accounts payable Depreciation expense Increase in accounts receivable Increase in inventory 7,620 (28,010) 41,350 45,280 (25,120) $153,380 Net cash inflow from operating activities Cash flows from investing activities Proceeds from sale of long-term investment Purchase of equipment Proceeds from sale of equipment 35,800 (19,900) 7,070 2. Prepare a statement of cash flows for Union Brake for the year ended December 31, 2017, using the indirect method. (Li UNION BRAKE INC. Statement of Cash Flows For Year Ended December 31, 2017 Cash flows from operating activities Profit $112,260 Adjustments to reconcile profit to net cash inflows from operating activities Loss on sale of equipment Decrease in accounts payable Depreciation expense Increase in accounts receivable Increase in inventory 7,620 (28,010) 41,350 45,280 (25,120) $153,380 Net cash inflow from operating activities Cash flows from investing activities Proceeds from sale of long-term investment Purchase of equipment Proceeds from sale of equipment 35,800 (19,900) 7,070 Net cash inflow from investing activities Cash flows from financing activities 22,970 Issuance of bonds payable Payment of dividend 31,000 (64,650) Net cash outflow from financing activities Net increase in cash Cash and cash equivalents, January 1, 2017 Cash and cash equivalents, December 31, 2017 (33,650) 38,420 37,360 $75,780