ICE Drilling Inc.'s balance sheet information and income statement are as follows: $1,113,200 568,000 $ 545,200 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 50,000 Other expenses 307, 360 Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit 357,360 187,840 13,080 174,760 28,760 $ 146,000 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $ 128,680 $ 179,640 Accounts receivable 153,600 119,160 Merchandise inventory 621,200 573,600 Prepaid expenses 12,120 22,000 Equipment 358,880 254,400 Accumulated depreciation 85,560 106,560 Accounts payable 191,080 246,840 Current notes payable 30,400 22,000 Notes payable 210,000 122,000 Common shares 458,800 358,000 Retained earnings 298,640 293,400 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $13,080. 2. Paid $71,880 to reduce a long-term note payable. 3. Equipment costing $113,000, with accumulated depreciation of $71,000, is sold for cash. 4. Equipment costing $217,480 is purchased by paying cash of $57,600 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 $140,760. 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.) ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Depreciation expense $ Cash received from sale of equipment 50,000 13,080 $ 63,080 Cash flows from investing activities: 0 Cash flows from financing activities: 0 $ 63,080 $ 63,080