Refer to the information in Problem 16-9A. 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 16-9A

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Lock & Key Inc. Post-Closing Trlal Balance (000s) Lock & Key Inc. Income Statement For Year Ended December 31, 2020 (000s) December 31 Revenues: Account 2020 2019 Sales. 3,300 Cash. $2,160 $1,260 Cost of goods sold. 2,520 Receivables.. 2,100 1,440 Gross profit. 780 Merchandise inventory. 2,040 2,280 Expenses: Property, plant, and equipment.. 3,720 3,960 Other expenses.. 660 Accumulated depreciation. 1,440 1,380 Depreciation expense. 240 Accounts payable. 1,440 1,080 Total expenses 900 Accrued liabilities.. 240 360 Loss . $ 120 Bonds payable. 1,680 1,800 Common shares 3,084 2,040 Retained earnings... 2,136 2,280