Prepare a cash flow statement, in good form, using the indicrect method for operating activities. Pillow Company's comparative balances sheets for 2019 and 2020 are presented below. Pillow Company Balance Sheets Assets Cash Accounts receivable, net Marketable securities Inventories Land Plant and equipment Less: Accumulated depreciation Total assets Liabilities and Stockholders' Equity Liabilities Accounts payable Accrued wages Long-term bonds (due 7/1/2023) Total liabilities Stockholders' equity: Common stock and APIC Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2020 337,000 420,000 15,000 520,000 2019 246,000 91,000 280,000 140,000 0 15,000 440,000 80,000 650,000 400,000 250,000 1,160,000 1,266,000 (106,000) 20,000 490,000 (180,000) (200,000) 2,922,000 2,432,000 Increase (Decrease) 660,000 500,000 540,000 520,000 260,000 1,460,000 1,380,000 160,000 20,000 360,000 (100,000) 80,000 966,000 760,000 206,000 496,000 292,000 204,000 1,462,000 1,052,000 410,000 2,922,000 2,432,000 490,000 The income statement of Pillow Company for the year ended December 31, 2020 is as follows: Pillow Company Income Statement for the Year Ended December 31, 2020 Sales Gain on sale of marketable securities Gain on extinguishment of debt Total revenue and gains Expenses Cost of goods sold Personnel costs Depreciation Loss on sale of equipment Interest Miscellaneous Total expenses Income before income taxes Income tax expense Net income 1,600,000 2,000 44,000 1,646,000 720,000 386,000 40,000 8,000 32,000 16,000 1,202,000 444,000 200,000 244,000 Other information 1. On Jan 11, 2020, Pillow purchased land for $170,000 cash 2. On Jan 23, 2020, Pillow extinguished long-term bonds with a face value of $100,000 3. On Feb 8, 2020, Pillow issued 8,400 shares of common stock for cash. The stock was issued at $15 per share. 4. Pillow purchased marketable securities for $30,000 on Mar 15, 2020; one-half of the securities were later sold on Dec 3, 2020 5. On June 9, 2020, Pillow issued 7,600 shares of common stock for land. The common stock and land had current market values of $80,000 at the time of the transaction 6. On July 1, 2020, Pillow declared and paid a $40,000 cash dividend 7. On Oct 18, 2020, Pillow sold equipment costing $106,000, with a book value of $46,000, for $38,000 cash