$ 924,600 552,200 $ 372,400 LAG Network Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 25,200 Other expenses 228,800 Total operating expenses Profit from operations Income taxes Profit 254,000 $ 118,400 14,600 $ 103,800 $ LAG Network Inc. Comparative Balance Sheet Information December 31 Assets 2020 2019 Cash $ 81,150 $ 53,600 Accounts receivable 38,400 36,800 Merchandise inventory 286,750 242,200 Equipment 150,400 137,600 Accumulated depreciation (67,800) (42,600) Total assets $ 488,900 $ 427,600 Liabilities and Equity Accounts payable $ 27,200 $ 39,800 Income taxes payable 7,600 6,200 Common shares 359,000 343,500 Retained earnings 95, 100 38,100 Total liabilities and equity $ 488,900 $427,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $12,800 cash. b. 6,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $46,800 of cash dividends during the vear. 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. e. 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.) Answer is not complete. LAG NETWORK INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Cash received from customers $ 1,600 Cash paid for merchandise inventory 44,550 X Cash paid for other operating expenses (228,800) Cash paid for income taxes 14,600 X $ (168.050) Net cash inflow from operating activities Cash flows from investing activities: 0 Cash flows from financing activities