Burrow Mining Inc.?s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows:

During 2020, the following transactions occurred:

1. Issued $14,000 of bonds payable at face value.

2. Sold the non-current investment on January 1, 2020, for $16,800.

3. Sold equipment for $3,920 cash that had originally cost $17,920 and had $11,760 of accumulated depreciation.

4. Purchased equipment for $11,200 cash.

Required

a. How much was paid in dividends during 2020?

b. Prepare a statement of cash flows for Burrow Mining Inc. for the year ended December 31, 2020, using the indirect method.

Analysis Component: Accounts Receivable increased from $21,840 to $51,520 in 2020. What transactions caused this account to change? Accounts Payable decreased during 2020. What caused this account to change?

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Burrow Mining Inc. Burrow Mining Inc. Comparative Balance Sheet Information Income Statement Year Ended December 31, 2020 December 31 Net Sales 504,000 2020 2019 Change $ 28,000 $ 14,560 $ 13,440 Cost of goods sold. 336,000 Cash. Gross profit. 168,000 Cash equivalents. Accounts receivable. Inventory. 4,480 10,080 5,600 Operating expenses. Depreciation expense Profit from operations. 77,920 29,680 51,520 21,840 24,080 102,000 66,640 48,720 17,920 66,000 Non-current investment. -0- 10,080 (10,080) Loss on sale of equipment 2,240 Land. 44,800 44,800 -0- Investment income 6,720 Building and equipment. 259,280 266,000 (6,720) Profit before taxes. 70,480 Accumulated depreciation. 68,880 56,560 12,320 Income taxes. 10,000 11,920 Accounts payable. 21,600 (9,680) Dividends payable. Profit 60,480 (400) 14,000 400 800 Bonds payable. 14,000 -0- Preferred shares. 47,600 47,600 -0- Common shares 236,880 236,880 -0- Retained earnings. 80,640 48,160 32,480