Refer to the information in Problem 16-7A. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.

Other information:

a. All accounts payable balances result from merchandise purchases.

b. All sales are credit sales.

c. All credits to accounts receivable are receipts from customers.

d. All debits to accounts payable result from payments for merchandise.

e. All other expenses are cash expenses.

Problem 16-7A

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Paddleboard Inc. Paddleboard Inc. Income Statement Post-Closing Trlal Balance (000s) For Year Ended December 31, 2020 (000s) December 31 Revenues: Account 2020 2019 Sales. 3,784 Cash.. $2,880 $1,840 Cost of goods sold 1,536 Receivables. 2,800 2,080 Gross profit. 2,248 Merchandise inventory. 2,560 3,040 Expenses: Property, plant, and equipment.. 3,040 2,720 Other expenses.. 880 Accumulated depreciation. 1,920 1,840 Depreciation expense. 80 Investments. 2,080 2,240 Total operating expenses. 960 Accounts payable. 1,920 1,440 Profit from operations. 1,288 Accrued liabilities.. 320 480 Income tax expense.. 288 Bonds payable. 2,240 2,400 Profit . 1,000 Common shares 3,040 2,720 Retained earnings. 3,920 3,040