6 References ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income statement Tor Year Ended December 31, 2020 Sales $1,113,600 Coat of goods sola 570,000 Gross profit $ 543,600 Operating expenses Depreciation expense $ 52,000 Other expenses 301.760 Total operating expenses 359,760 Profit from operatione $ 102,849 Loss on sale of equipment 19,480 Profit before taxes $ 170,360 Income taxes 29,160 Profit 141,200 $ ICE Delling Inc. Comparative Balance sheet Information December 31 2020 2019 Cash $ 130,680 $ 101,640 Accounts receivable 155,600 121,160 Merchandise inventory 623,200 575,600 Prepaid expenses 12,140 24,000 Equipment 359,280 256,400 Accumulated depreciation 87,560 Accounts payable 189,500 243,240 Current notes payable 32,400 24,000 Notes payable 210,000 122,400 Common shares 460,800 360,000 Retained earning 300,640 300,600 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $13,480. 2. Paid $72,280 to reduce a long term note payable 3. Equipment costing $115,000, with accumulated depreciation of $73,000, is sold for cash. 4. Equipment costing $217880 is purchased by paying cash of $58,000 and signing a long-term note payable for the balance. 5. Borrowed $8.400 by signing a short-term note payable 6. Issued 10,080 common shares for cash at $10 per share 7. Declared and paid cash dividends of $141160. Other information: a. All sales are credit sales. All credits to accounts receivable in the period are receipts from customers. Purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes f. The other expenses are paid in advance and are initially debited to Prepaid Expenses 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.) ICE DRILLING INC Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Cash flow from investing activities: Cash flows from financing activities