3 LAG Network Inc's balance sheet and income statement are as follows: Sales LAG Network Inc. Income Statement For Year Ended December 31, 2020 References Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit $ 25,200 239,800 $ 932,600 560,200 $ 372,400 265,000 $ 107,400 22,600 $ 84,800 Assets LAG Network Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity $ 81,230 46,400 279,670 158,400 (75,800) $ 489,900 $ 35,200 15,600 367,000 72,100 $ 55,200 38,400 253,400 139,200 (50,600) $ 435,600 $ 47,800 14,200 331,500 42,100 Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity $ 489,900 $ 435,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $19,200 cash. b. 14,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $54,800 of cash dividends during the year. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method. (List any deduction in cash and cash outflows as negative amounts.) Cash flows from operating activities: Profit LAG NETWORK INC. Statement of Cash Flows For Year Ended December 31, 2020 Adjustments to reconcile profit to net cash inflows from operating activities: Cash flows from investing activities: Cash flows from financing activities: $ 0 0 0 $ 0