accounts options:
- Cash balance at beginning of 2020
- Cash balance at end of 2020
- Cash borrowed on current notes payable
- Cash paid for dividends
- Cash paid for equipment
- Cash paid on notes payable
- Cash received from issuing common shares
- Cash received from sale of equipment
- Decrease in accounts payable
- Decrease in accounts receivable
- Decrease in merchandise inventory
- Decrease in prepaid expenses
- Decrease in wages payable
- Depreciation expense
- Gain on sale of equipment
- Increase in accounts payable
- Increase in accounts receivable
- Increase in income taxes payable
- Increase in merchandise inventory
- Increase in prepaid expenses
- Loss on sale of equipment
- Net cash inflow from operating activities
- Net cash outflow from operating activities
- Net cash inflow from investing activities
- Net cash outflow from investing activities
- Net cash inflow from financing activities
- Net cash outflow from financing activities
- Net decrease in cash
- Net increase in cash
ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales $1, 109, 600 Cost of goods sold 550,000 Gross profit $ 559,600 Operating expenses: Depreciation expense S 32,000 Other expenses 303, 760 Total operating expenses 335,760 Profit from operations $ 223,840 Loss on sale of equipment 9,480 Profit before taxes $ 214,360 Income taxes 25, 160 Profit $ 189, 200ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $ 101, 680 $ 161, 640 Accounts receivable 135, 600 101, 160 Merchandise inventory 603, 200 555, 600 Prepaid expenses 11,940 14,000 Equipment 355, 280 236, 400 Accumulated depreciation 67,560 88,560 Accounts payable 196, 300 289, 240 Current notes payable 12, 400 4,000 Notes payable 210,900 118, 400 Common shares 440, 800 340,000 Retained earnings 280, 640 228, 600 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $9,480. 2. Paid $68,280 to reduce a long-term note payable. 3. Equipment costing $95,000, with accumulated depreciation of $53,000, is sold for cash. 4. Equipment costing $213,880 is purchased by paying cash of $54,000 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 $137,160.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.) ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Adjustments to reconcile profit to net cash inflows from operating activities: 0 Cash flows from investing activities:CA 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 CA 0Analysis Component: Merchandise Inventory, Prepaid Expenses, Notes Payable, and Common Shares are some of the accounts that changed during 2020. Indicate what transactions likely caused each of these accounts to increase and/or decrease. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer.) Merchandise inventory: increases caused by the purchase of merchandise decreases caused by the purchase of merchandise decreases caused by the sale of merchandise O increases caused by the sale of merchandisePrepaid expenses: D increases caused by the purchase of prepaid Items. I.e.. such as the payment of rent or Insurance In advance D decreases caused by the use of prepaid expenses El decreases caused by the purchase of prepaid Items. I.e.. such as the payment of rem or Insurance In advance D increases caused by the use of prepaid expenses Notes payable: Notes payable: increases caused by the issuance of debt (borrowing) decreases caused by principal payments decreases caused by the issuance of debt (borrowing) increases caused by principal paymentsCommon shares: increases caused by the issuance of shares and/or share dividends decreases caused by the repurchase and/or cancellation of shares decreases caused by the issuance of shares and/or share dividends increases caused by the repurchase and/or cancellation of shares
