Waterways prepared the balance sheet and income statement for the irrigation installation division for 2020. Now the company also needs to prepare a statement of cash flows for the same division. The comparative balance sheets for Waterways Corporations Irrigation Installation Division for the years 2019 and 2020 and the income statement for the year 2020 are presented below. Additional information: 1. Waterways sold a company vehicle for $24,200. The vehicle had been used for 10 years. It cost $80,500 when purchased and had a 10-year life and a $6,100 salvage value. Straight-line depreciation was used. 2. Waterways purchased with cash new equipment costing $209,100. 3. Prepaid expenses increased by $33,800. All changes in accounts payable relate to inventory purchases.

WATERWAYS CORPORATIONINSTALLATION DIVISION Balance Sheets December 31
Assets				2020		2019
Current assets
	Cash			$829,900		$751,300
	Accounts receivable			679,600		543,100
	Work in process			705,000
	Inventory			16,800		7,500
	Prepaid expenses			76,200		42,400
	Total current assets			2,307,500		1,344,300
Property, plant, and equipment
	Land			302,000		302,000
	Buildings			447,000		447,000
	Equipment			921,800		793,200
	Furnishings			40,300		40,300
	Accumulated depreciation			(483,600	)	(483,800	)
	Total property, plant, and equipment			1,227,500		1,098,700
Total assets				$3,535,000		$2,443,000
Liabilities and Stockholders Equity
Current liabilities
	Accounts payable			$157,000		$128,300
	Income taxes payable			101,500		80,700
	Wages payable			4,400		2,000
	Interest payable			1,100
	Other current liabilities			14,600		15,100
	Revolving bank loan payable			14,900
	Total current liabilities			293,500		226,100
Long-term liabilities
	Note payable			142,000
	Total liabilities			435,500		226,100
Stockholders equity
	Common stock			1,250,000		1,250,000
	Retained earnings			1,849,500		966,900
	Total stockholders equity			3,099,500		2,216,900
Total liabilities and stockholders equity				$3,535,000		$2,443,000

WATERWAYS CORPORATIONINSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020
Sales					$5,513,457
Less: Cost of goods sold					3,125,200
Gross profit					2,388,257
Operating expenses
	Advertising		$50,500
	Insurance		400,400
	Salaries and wages		587,300
	Depreciation		74,200
	Other operating expenses		20,900
Total operating expenses					1,133,300
Income from operations					1,254,957
Other income
	Gain on sale of equipment		18,100
Other expenses
	Interest expense		(12,200	)
Net other income and expenses					5,900
Income before income tax					1,260,857
Income tax expense					378,257
Net income					$882,600

(a) Prepare a statement of cash flows using the indirect method for the year 2020. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)