f. Income taxes are cash expenses. Problem 16-5A Preparing the statement of cash flows (indirect method) LO5,6 CHECK FIGURE: Net cash inflow from operating activities $74,760 CE Drilling Inc's balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2017 ICE Drilling Inc. 1,111,600 560,000 551.600 2016 m $120,680 $171.640 e145,600 111,160 Merchandise inventory...613.200 565.600 12,040 14.000 357.280 246,400 48,560 197,400 261.240 22,400 14,000 210,000 120,400 450,800 350,000 20.640 264,600 2017 Cost of goods sold. Gross profit. Operating expenses: Accounts receivable .. $ 42,000 305,760 Depreciation expense.. Profit from operations.. Profit before taxes Profit.. Equipment. 347,760A 203.840 Accounts pauable 192.360 77,560 11480.0Current notes payable Notes payable 27,160 165,200 Retained earnings Additional information regarding ICE Drilling's activities during 2017 1. Loss on sale of equipment is $11,480 2. Paid $70,280 to reduce a long-term note payable. 3. Equipment costing $105,00, with accumulated depreciation of $63,000, is sold for cash. 1037