Prepare a statement of cash flows for 2020 using the indirect method using the information below.

Pennant Corporation's end of year comparative balance sheets are presented below.

Pennant Corporation

Comparative Balance Sheets

December 31

2020 2019

Cash $ 15,200 $ 17,700

Accounts receivable 25,200 22,300

Investments 20,000 16,000

Equipment 60,000 70,000

Accumulated depreciation (14,000) (10,000)

Total $106,400 $116,000

Accounts payable $ 14,600 $11,100

Bonds payable 10,000 30,000

Common stock 50,000 45,000

Retained earnings 31,800 29,900

Total $106,400 $116,000

Additional information:

1. Net income was $18,300. Dividends declared and paid were $16, 400.

2. Equipment which cost $10,000 and had accumulated depreciation of $1,200 was sold for $3,300.

3. All other changes in noncurrent account balances had a direct effect on cash flows, except the change in accumulated depreciation.

(you may use the form below or create your own)