ICE Drilling Inc.'s balance sheet information and income statement are as follows: $1,110,600 555,888 $ 555,600 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 37,000 Other expenses 304,760 Total operating expenses Profit from operations Lass on sale of equipment Profit before taxes Incone taxes Profit 341, 768 $ 213,840 $ 19,480 $ 203, 360 26, 160 $ 177,200 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash 5 186,680 5 166,640 Accounts receivable 140,600 106,168 Merchandise inventory 609,200 560,688 Prepaid expenses 11,990 13,008 356,280 241,400 Accumulated depreciation 72,560 93,568 Accounts payable 192,350 274,240 Current notes payable 17,400 9,000 Notes payable 218,000 119,400 Common shares 445,800 345,000 Retained earnings 285,640 246,600 Equipment Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $10,480. 2. Paid $69,280 to reduce a long-term note payable. 3. Equipment costing $100,000, with accumulated depreciation of $58,000, is sold for cash. 4. Equipment costing $214,880 is purchased by paying cash of $55,000 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 $138,160. 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.) Answer is not complete. ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities Cash paid for merchandise inventory s 10,480 Depreciation expense 37,000 Cash paid for other expenses 1,010 Cash paid for merchandise inventory (47.600) Cash borrowed on current notes payable 90,6003 S Cash flows from investing activities: 91,490 0 0 Cash flows from financing activities 0 s 91,490 S 91,490