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ICE Drilling incis balance sheet information and income statement are as follows: Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of

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ICE Drilling incis 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 $12.680. 2. Paid $71,480 to reduce a iong-term note payable. 3. Equipment costing $111.000, with accumulated depreciation of $69,000, is sold for cash. 4. Equipment costing $217,080 is purchased by paying cash of $57,200 and signing a long-term note payable for the balance 5. Borrowed $8,400 by signing a short-term note payable. o. Issued 10.080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $140,360. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method. (Llst any deduction in cash and cash outflows os negative amounts.) Analyals Component: Merchand se Imventory. 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 andior decrease. (You moy select more than one answer. Single cllck the box with the question mark to produce o check mark for a correct answer and double ellek the box with the question mark to empty the box for a wrong onswer.) Merchandise inventory? ? increases coused by the purchase of merchandise 2 decreases caused by the purchase of merchandire 2 decresces caused by the sale of merchandise ? increares caused by the sale of merchand se Prepaid expenses: ? increases caured by the purchase of prepaid zems, te. such as the peymert of rert or insuranca in actiance ? decreacec caured by the ure of prepaid expenses ? decreases caused by the purchare of prepaid temse, le. such bs the pbyment of rent or insurance in advance ? increstes cauted by the ure of prapaid experses Notes payable: increases caused by the issuance of debt boriowng decressen caused by principal payments decreases caused by the issuance of debt borowing: increases caused by princpai paymertu Common shares 7 incresses caused by the issuance of shares andior shibre alidendi 2 decreases coused by the reourchase andior canceliaton of shares 12 decrestec caused by the msuance of theres and or share dibenos ? ingreares caured by the repurchise and or cancelation of shares

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