Problem 23-06 Your answer is partially correct. Try again. Comparative balance sheet accounts of Riverbed Inc. are presented below. RIVERBED INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $42,200 $33,900 Accounts Receivable 71,100 59,600 Inventory 30,000 23,800 Equity investments 22,400 38,400 Machinery 30,200 18,600 Buildings 67,000 56,000 Land 7,500 7,500 $270,400 $237,800 Credit Accounts Allowance for Doubtful Accounts $2,300 $1,600 Accumulated Depreciation-Machinery 5,600 2,200 Accumulated Depreciation-Buildings 13,400 9,100 Accounts Payable 34,800 24,600 Accrued Payables 3,400 2,600 Long-Term Notes Payable 20,900 31,200 Common Stock, no-par 150,000 125,000 Retained Earnings 40,000 41,500 $270,400 $237,800Additional data (ignoring taxes): 1. Net income for the year was $44,400. 2. Cash dividends declared and paid during the year were $20,900. 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized. 4. Equity investments (level of ownership is less than 20%) that cost $25,100 were sold during the year for $28,100. No unrealized gains and losses were recorded on these investments in 2020. 5. Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250. Riverbed's 2020 income statement follows (ignoring taxes). Sales revenue $544,300 Less: Cost of goods sold 381,900 Gross margin 162,400 Less: Operating expenses (includes $8,450 depreciation and $5,327 bad debts) 120,200 Income from operations 42,200 Other: Gain on sale of investments $3,000 Loss on sale of machinery (800 ) 2,200 Net income $44,400(b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) RIVERBED INC. Statement of Cash Flows For the Year Ended December 31, 2020 (Indirect Method) Cash Flows from Operating Activities Net Income 44,400 Adjustments to reconcile net income to Cash Flows from Operating Activities Depreciation Expense X 8750 Increase in Accounts Receivable (Net) + -9500 Gain on Sale of Investments -3700 Loss on Sale of Machinery 800 Increase in Inventory -6000 Increase in Accounts Payable 102000 Increase in Accrued Payables 900 X 1450Net Cash Provided by Operating Activities + EX 44450 Cash Flows from Investing Activities Sale of Machinery 2250 Purchase of Machinery x -154000 Addition to Buildings -122000 Sale of Investments 284000 x X Gain on Sale of Investments -7800 x Net Cash Provided by Investing Activities * -4750 Cash Flows from Financing Activities Reduction in Long-term Note Payable X -9800 Cash Dividends Paid -21400 Net Cash Provided by Financing Activities # -31200\f