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ICE Drilling Inc. s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 3 1 ,

ICE Drilling Inc.s balance sheet information and income statement are as follows:
ICE Drilling Inc.
Income Statement
For Year Ended December 31,2023
Sales $ 1,113,200
Cost of goods sold 568,000
Gross profit $ 545,200
Operating expenses:
Depreciation expense $ 50,000
Other expenses 307,360
Total operating expenses 357,360
Profit from operations $ 187,840
Loss on sale of equipment 13,080
Profit before taxes $ 174,760
Income taxes 28,760
Profit $ 146,000
ICE Drilling Inc.
Comparative Balance Sheet Information
December 31
20232022
Cash $ 128,680 $ 179,640
Accounts receivable 153,600119,160
Merchandise inventory 621,200573,600
Prepaid expenses 12,12022,000
Equipment 358,880254,400
Accumulated depreciation 85,560106,560
Accounts payable 191,080246,840
Current notes payable 30,40022,000
Notes payable 210,000122,000
Common shares 458,800358,000
Retained earnings 298,640293,400
Additional information regarding ICE Drillings activities during 2023:
Loss on sale of equipment is $13,080.
Paid $71,880 to reduce a long-term note payable.
Equipment costing $113,000, with accumulated depreciation of $71,000, is sold for cash.
Equipment costing $217,480 is purchased by paying cash of $57,600 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 $140,760.
Other information:
All sales are credit sales.
All credits to accounts receivable in the period are receipts from customers.
Purchases of merchandise are on credit.
All debits to accounts payable in the period result from payments for merchandise.
The only decrease in income taxes payable is for payment of taxes.
The other expenses are paid in advance and are initially debited to Prepaid Expenses.
Required:
Prepare a statement of cash flows for 2023 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.)

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