P23.1 (LO 2, 4) (SCFIndirect Method) 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.

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

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.

		2020		2019
Declared		December 15, 2020		December 15, 2019
Paid		February 28, 2021		February 28, 2020
Amount		$80,000		$100,000

Instructions

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