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ICE Drilling Inc.'s balance sheet information and income statement are as follows: Additional information regarding ICE Drilling's activities during 2020 1. Loss on sale of equipment is $12,080. 2. Paid $70,880 to reduce a long-term note payable. 3. Equipment costing $108,000, with accumulated depreciation of $66,000, is sold for cash. 4. Equipment costing $216,480 is purchased by paying cash of $56,600 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 $139760 Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method. (List any deduction in cash and cash outflows as negative amounts.) \begin{tabular}{l} Net cash inflow from operating activities \\ Cash flows from investing activities: \\ Cash paid for equipment \\ Cash received from sale of equipment \\ \hline Net cash inflow from investing activities \\ \hline Cash flows from financing activities: \\ \hline Cash received from issuing common shares \\ \hline Cash borrowed on current notes payable \\ \hline Cash paid on notes payable \\ \hline \end{tabular} \begin{tabular}{|ll|} \hline$ & 0 \\ \hline & \\ \hline & 0 \\ \hline & \\ \hline & 0 \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline & \\ \hline \end{tabular} 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: increoses coused by the purchase of merchandise decreoses coused by the purchose of merchandise decresses coused by the sole of merchandise incresses coused by the saie of merchandise Prepaid expenses: increases caused by the purchase of prepaid items, i.e., 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, f.e., such as the payment of rent or insurance in advance ? increases caused by the use of prepaid expenses Notes payable: Increases caused by the issuance of debt (borrowing) decreases caused by principal poyments decreases coused by the issuance of debt (borrowing) ? Increases caused by principal payments Common 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 andior cancellation of shares