Drilling Inc.'s balance sheet information and income statement are a $1,111,200 558,000 $ 553,200 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 les st of goods sold oss profit erating expenses: Depreciation expense $ 40,000 Other expenses 305,360 Total operating expenses rofit from operations oss on sale of equipment -ofit before taxes ncome taxes -ofit 345, 360 $ 207,840 11,080 $ 196,760 26,760 $ 170,000 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 ash $ 109,680 $ 169,640 ccounts receivable 143,600 109,160 erchandise inventory 611,200 563,600 repaid expenses 12,020 16,000 quipment 356,880 244,400 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $11,080. 2. Paid $69,880 to reduce a long-term note payable. 3. Equipment costing $103,000, with accumulated depreciation of $61,000, is sold for cash. 4. Equipment costing $215,480 is purchased by paying cash of $55,600 and signing a long-term nc 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 $138,760. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating 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: Profit Adjustments to reconcile profit to net cash inflows from operating activities: Depreciation expense Loss on sale of equipment Increase in accounts receivable Analysis Component: Merchandise Inventory, Prepaid Expenses, Notes Payable, and Common Shares are some of the acc Indicate what transactions likely caused each of these accounts to increase and/or decrease. (You m Single click the box with the question mark to produce a check mark for a correct answer and dow question mark to empty the box for a wrong answer.) Merchandise inventory: ? increases caused by the purchase of merchandise 1 decreases caused by the purchase of merchandise decreases caused by the sale of merchandise 3 increases caused by the sale of merchandise Prepaid expenses increases caused by the purchase of prepaid items, ie, such as the payment of rent or insurance in advance Drilling Inc.'s balance sheet information and income statement are a $1,111,200 558,000 $ 553,200 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 les st of goods sold oss profit erating expenses: Depreciation expense $ 40,000 Other expenses 305,360 Total operating expenses rofit from operations oss on sale of equipment -ofit before taxes ncome taxes -ofit 345, 360 $ 207,840 11,080 $ 196,760 26,760 $ 170,000 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 ash $ 109,680 $ 169,640 ccounts receivable 143,600 109,160 erchandise inventory 611,200 563,600 repaid expenses 12,020 16,000 quipment 356,880 244,400 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $11,080. 2. Paid $69,880 to reduce a long-term note payable. 3. Equipment costing $103,000, with accumulated depreciation of $61,000, is sold for cash. 4. Equipment costing $215,480 is purchased by paying cash of $55,600 and signing a long-term nc 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 $138,760. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating 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: Profit Adjustments to reconcile profit to net cash inflows from operating activities: Depreciation expense Loss on sale of equipment Increase in accounts receivable Analysis Component: Merchandise Inventory, Prepaid Expenses, Notes Payable, and Common Shares are some of the acc Indicate what transactions likely caused each of these accounts to increase and/or decrease. (You m Single click the box with the question mark to produce a check mark for a correct answer and dow question mark to empty the box for a wrong answer.) Merchandise inventory: ? increases caused by the purchase of merchandise 1 decreases caused by the purchase of merchandise decreases caused by the sale of merchandise 3 increases caused by the sale of merchandise Prepaid expenses increases caused by the purchase of prepaid items, ie, such as the payment of rent or insurance in advance