4 LAG Network Inc.'s balance sheet and income statement are as follows: References $ $ 938,600 S66,200 $ 372,400 LAG Network In Income Statement For Year Ended December 31, 2020 Sales Coat of goods sold Gross profit Operating expenses Depreciation expense $ 25,200 other expenses 242,800 Total operating expenses Droit from operations Income taxes Profit - 260,000 $ $ 104,400 28,600 $75,000 2020 LNG Network The Comparative Balance Sheet Information December 31 Assets 2019 Cash $ 81,290 $ 56,400 Accounts receivable 52,400 39,600 Merchandise inventory 279.610 261.800 Equipment 164,400 140,400 Accumulated depreciation (01.000) (56.600) Total sents $ 495,900 $ $441,600 Liabilities and Equity recounts payable $ 41,200 $ 53,000 $ Income taas payable 21,600 20.200 Common shares 373,000 322.500 Hetalsed samninga 60, 100 45,100 Total liabilities and equity $ 495,900 $441,600 Additional information regarding LAG Network Inc.'s activities during 2020: : a. Equipment is purchased for $24,000 cash. b. 20,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $60,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales b. All credits to accounts receivable are receipts from customers c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise. Other operating expenses are cash expenses. f. The only decrease in income taxes payable is for payment of taxes. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List . any deduction in cash and cash outflows as negative amounts.) LAG NETWORKING Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities