Chi 4 ICE Drilling Inc.'s balance sheet information and income statement are as follows: 10 paints $1,113,000 567.000 5 546,000 ebook ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 49,000 Other expenses 307,160 Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit Prins Deference 356,162 $ 189,840 12,850 $ 176,960 26.560 $ 148,460 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $ 127,680 5 178,640 Accounts receivable 152,600 118,150 Merchandise inventory 620,200 572,600 Prepaid expenses 12,110 21,000 Equipment 358,60 253,400 SUDI Check my world 1 Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable Common shares Retained earnings 5 127,650 152,600 620,200 12,110 358,680 34,560 191,870 29,400 210,000 457,800 297,640 $ 178,640 118,160 572,500 21,000 253,400 105,560 248,640 21,600 121,800 357,000 289,00 00 antes Additional information regarding ICE Drilling's activities during 2020 1. Loss on sale of equipment is $12,880. 2. Paid $71,680 to reduce a long-term note payable. 3. Equipment costing $112,000, with accumulated depreciation of $70,000, is sold for cash, 4. Equipment costing $217.280 is purchased by paying cash of $57,400 and signing a long-term ndte 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 $140,560 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.) Check my work 7 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 gook Cash flows from operating activities I inces Adjustments to reconcile profit to net cash inflows from operating activities: 5 0 Cash flows from investing activities: - 4152022 Saved Help Save & EX Subm Check my work 4 $ 0 Cash flows from investing activities eBook 0 Print Cash flows from financing activities ferences + $ O ment 27 - Chapters 16,17-cue 04132022 6 Help Save & Exit Submit Check my work Analysis 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 ON ces increases caused by the purchase of merchandise decreases caused by the purchase of merchandise decreases caused by the sale of merchandise | increases caused by the sale of merchandise Prepaid expenses. Check my wor 4 Prepaid expenses Increases cauted by the purchase of prepaid Items, te, such as the payment of rent or insurance in advance decreases caused by the use of prepaid expenses decreases caused by the purchase of prepaid items, te, such as the payment of rent or insurance in advance Increases caused by the use of prepaid expenses eBook ferences 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 payments 4 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 payments 10 points eBook Print Common shares: References 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