Indirect Method Preparing a Statement of Cash Flows The accounting records of Guci Corp. show the following data for the current year. Balance Sheet, December 31 2019 2020 Difference Cash $300 $195 $(105) Accounts receivable 900 600 (300) Merchandise inventory 300 900 600 Equipment, net 5,400 6,600 1,200 Total assets $6,900 $8,295 $1,395 Accounts payable $825 $720 $(105) Salaries payable 150 75 (75) Bonds payable 1,800 2,100 300 Common stock (no-par) 3,300 3,600 300 Retained earnings 825 1,800 975 Total liabilities and stockholders' equity $6,900 $8,295 $1,395 Income Statement For Year Ended December 31, 2020 Revenues $9,000 Cost of goods sold 5,100 Depreciation 1,200 Other expenses 1,155 Net income $1,545 Additional information 1. Equipment was sold for its book value of $1,200. 2. Equipment purchased during the year was $3,600. 3. Cash dividends declared and paid were $570. Required Prepare the statement of cash flows for Guci Corp for the year ended December 31, 2020, using the indirect method to present cash flows from operating activities. Statement of Cash Flows For the Year Ended December 31, 2020 Cash flows from operating activities Net income $ 0 Adjustments Depreciation expense Decrease in accounts receivable 0 Increase in merchandise inventory 0 Decrease in accounts payable Decrease in salaries payable Net cash provided by operating activities Cash flows from investing activities Purchase of equipment Sale of equipment Net cash used by investing activities Cash flows from financing activities 0 0 0 0 0 0 0 0 0 0 Net cash used by investing activities Cash flows from financing activities Issuance of bonds payable Issuance of common stock Cash paid for dividends Net cash provided by financing activities Net increase in cash during 2020 Cash, January 1, 2020 Cash, December 31, 2020 0 0 0 0 $ 0