using direct method:

Indigo Inc, a greeting card company, had the following statements prepared as of December 31, 2020. INDIGO INC COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 12/31/20 12/31/19 Cash $6,000 56.900 Accounts receivable 62,400 50,800 Short-term debt investments (available-for-sale) 35,100 18,100 Inventory 40.100 60,400 5.100 4,000 Prepaid rent Equipment Accumulated depreciation-equipment 152,400 131,000 (34.700) (24.800) Copyrights 45.500 49.900 Total assets $311.900 $296,300 $45.900 $39.900 4,000 6,000 8.100 4,000 Accounts payable Income taxes payable Salaries and wages payable Short-term loans payable Long-term loans payable Common stock $10 par 8,100 10,000 59,500 68,700 100,000 100.000 Contributed capital.common stock 30,000 30.000 Retained earnings 56.300 37.700 Total liabilities & stockholders' equity $311,900 $296,300 INDIGO INC. INCOME STATEMENT FOR THE YEAR ENDING DECEMBER 31, 2020 Sales revenue $337,125 Cost of goods sold 176,500 Gross profit 160,625 Operating expenses 120.600 Operating income 40,025 Interest expense $11.400 Gain on sale of equipment 2.000 9.400 Income before tax 30.625 Income tax expense 6,125 Net income $24.500 Additional information: 1 2 Dividends in the amount of $5.900 were declared and paid during 2020. Depreciation expense and amortization expense are included in operating expenses. No unrealized gains or losses have occurred on the investments during the year. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2020. 3. 4. Prepare a statement of cash flows using the direct method. (Show amounts in the investing and financing sections that decrease cash flow with either a signes. -15,000 or in parenthesis es (15,000)) INDIGO INC Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Actitles $ 4 4 >