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 $23,900. The vehicle had been used for 10 years. It cost $80,500 when purchased and had a 10-year life and a $6,000 salvage value. Straight-line depreciation was used.
2.		Waterways purchased with cash new equipment costing $209,800.
3.		Prepaid expenses increased by $35,000. All changes in accounts payable relate to inventory purchases.

WATERWAYS CORPORATIONINSTALLATION DIVISION Balance Sheets December 31
Assets				2020		2019
Current assets
	Cash			$829,200		$747,000
	Accounts receivable			675,300		540,700
	Work in process			708,400
	Inventory			16,700		7,600
	Prepaid expenses			77,200		42,200
	Total current assets			2,306,800		1,337,500
Property, plant, and equipment
	Land			298,000		298,000
	Buildings			447,000		447,000
	Equipment			926,600		797,300
	Furnishings			40,000		40,000
	Accumulated depreciation			(479,400	)	(489,100	)
	Total property, plant, and equipment			1,232,200		1,093,200
Total assets				$3,539,000		$2,430,700
Liabilities and Stockholders Equity
Current liabilities
	Accounts payable			$155,500		$129,100
	Income taxes payable			101,700		79,700
	Wages payable			4,600		2,000
	Interest payable			1,100
	Other current liabilities			14,600		15,400
	Revolving bank loan payable			14,900
	Total current liabilities			292,400		226,200
Long-term liabilities
	Note payable			140,000
	Total liabilities			432,400		226,200
Stockholders equity
	Common stock			1,250,000		1,250,000
	Retained earnings			1,856,600		954,500
	Total stockholders equity			3,106,600		2,204,500
Total liabilities and stockholders equity				$3,539,000		$2,430,700

WATERWAYS CORPORATIONINSTALLATION DIVISION Income Statement For the Year Ending December 31, 2020
Sales					$5,533,614
Less: Cost of goods sold					3,129,600
Gross profit					2,404,014
Operating expenses
	Advertising		$49,800
	Insurance		400,500
	Salaries and wages		584,800
	Depreciation		64,800
	Other operating expenses		21,100
Total operating expenses					1,121,000
Income from operations					1,283,014
Other income
	Gain on sale of equipment		17,900
Other expenses
	Interest expense		(12,200	)
Net other income and expenses					5,700
Income before income tax					1,288,714
Income tax expense					386,614
Net income					$902,100

(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).)