ICE Drilling Inc.

Additional information regarding ICE Drilling's activities during $2020$:

Loss on sale of equipment is $$11,680.$

Paid $$70,480$ to reduce a long$-$term note payable.

Equipment costing $$106,000,$ with accumulated depreciation of $$64,000,$ is sold for cash,

Equipment costing $$216,080$ is purchased by paying cash of $$56,200$ and signing a long$-$term note payable for the

balance.

Borrowed $$8,400$ by signing a short$-$term note payable.

Issued $10,080$ common shares for cash at $$10$ per share.

Declared and paid cash dividends of $$139,360.$

Other information:

a$.$ All sales are credit sales.

b$.$ All credits to accounts receivable in the period are receipts from customers.

c$.$ Purchases of merchandise are on credit.

d$.$ All debits to accounts payable in the period result from payments for merchandise.

e$.$ The only decrease in income taxes payable is for payment of taxes.

f$.$ The other expenses are paid in advance and are initially debited to Prepaid Expenses.

Required:

Prepare a statement of cash flows for $2020$ using the direct method to report cash inflows and outflows from operating

activities. $($List any deduction in cash and cash outflows as negative amounts.$)$