Refer to the information in Problem 16-7B. 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 16-7B

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Zhang Systems Inc. Zhang Systems Inc. Post-Closing Trlal Balance ($millions) Income Statement For Year Ended December 31, 2020 ($millions) December 31 Revenues: Account 2020 2019 Sales. 26,700 Cash.. $ 54 $ 129 Cost of goods sold 19,500 Receivables.. 276 372 Gross Profit. 7,200 Merchandise inventory. Property, plant, and equipment.. Accumulated depreciation. 408 261 Expenses: 6,900 8,976 Other expenses.. 7,050 3,699 4,125 Depreciation expense. 1,350 Non-current investments. 1,560 309 Total expenses 8,400 Accounts payable. 318 405 Profit (Loss) (1,200) Accrued liabilities. 141 117 Bonds payable. 1,200 600 Common shares 2,700 2,100 Retained earnings. 1,140 2,700