The following are Sullivan Corp.?s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Additional information:

1. On December 31, 2019, Sullivan acquired 25% of Myers Co.?s common stock for $275,000. On that date, the carrying value of Myers?s assets and liabilities, which approximated their fair values, was $1,100,000. Myers reported income of $140,000 for the year ended December 31, 2020. No dividend was paid on Myers?s common stock during the year.

2. During 2020, Sullivan loaned $300,000 to TLC Co., an unrelated company. TLC made the first semiannual principal repayment of $50,000, plus interest at 10%, on December 31, 2020.

3. On January 2, 2020, Sullivan sold equipment costing $60,000, with a carrying amount of $38,000, for $40,000 cash.

4. On December 31, 2020, Sullivan entered into a capital lease for an office building. The present value of the annual rental payments is $400,000, which equals the fair value of the building. Sullivan made the first rental payment of $60,000 when due on January 2, 2021.

5. Net income for 2020 was $370,000.

6. Sullivan declared and paid the following cash dividends for 2020 and 2019.

Instructions

Prepare a statement of cash flows for Sullivan Corp. for the year ended December 31, 2020, using the indirect method.

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Comparative Balance Sheets Increase (Decrease) 2020 2019 $ 815,000 $ 700,000 Cash $115,000 Accounts receivable (40,000) 1,128,000 1,168,000 Inventory 1,850,000 1,715,000 135,000 Property, plant, and equipment Accumulated depreciation Investment in Myers Co. 3,307,000 (1,165,000) 340,000 (125,000) 2,967,000 (1,040,000) 310,000 275,000 35,000 Loan receivable 250,000 250,000 Total assets $6,495,000 $5,785,000 $710,000 $ 955,000 $ 60,000 (20,000) $1,015,000 Accounts payable Income taxes payable Dividends payable Lease liability Common stock, $1 par Paid-in capital in excess of 30,000 50,000 (20,000) 80,000 100,000 400,000 400,000 500,000 500,000 1,500,000 1,500,000 par-common stock Retained earnings 2,970,000 2,680,000 290,000 Total liabilities and stockholders' equity $6,495,000 $5,785,000 $710,000 2019 December 15, 2019 February 28, 2020 2020 Declared Paid Amount December 15, 2020 February 28, 2021 $80,000 $100,000