Ice drilling Inc's balance sheet information and income statement are as follows:

Addiotitonal information regarding Ice's drilling activities during 2020:

Perpare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method.

Merchandise inventory, perpaid expensess, 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 and or decrease

$1,112,000 562,900 $ 550,000 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 44,000 Other expenses 306,160 Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit 350, 160 $ 199,840 11.880 $ 187,960 27,560 160,400 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $ 122,680 $ 173,640 Accounts receivable 147,600 113, 160 Merchandise inventory 615,200 567,600 Prepaid expenses 12,060 16,000 Equipment 357, 680 248,400 Accumulated depreciation 79,560 100,560 Accounts payable 195,820 257,640 Current notes payable 24,400 16,000 Notes payable 210,000 120,800 Common shares 452,800 352,000 Retained earnings 292,640 271,800 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $11,880. 2. Paid $70,680 to reduce a long term note payable 3. Equipment costing $107.000, with accumulated depreciation of $65.000, is sold for cash. 4. Equipment costing $216.280 is purchased by paying cash of $56.400 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 pald cash dividends of $139.560 Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Adjustments to reconcile profit to net cash inflows from operating activities: Cash flows from investing activities: Cash flows from financing activities: Merchandise inventory: increases caused by the purchase of merchandise decreases caused by the purchase of merchandise 2 decreases caused by the sale of merchandise 2 Increases caused by the sale of merchandise Prepaid expenses ? Increases caused by the purchase of prepaid items, le such as the payment of rent or insurance in advance 2 decreases caused by the use of prepaid expenses 2 decreases caused by the purchase of prepaid items. Le such as the payment of rent or insurance in advance Increases caused by the use of prepaid expenses Notes payable: ? Increases caused by the issuance of debt (borrowing) 2 decreases caused by principal payments ? decreases caused by the issuance of debt (borrowing) Increases caused by principal payments Common shares 2 Increases caused by the Issuance of shares and/or share dividends 1 decreases caused by the repurchase and/or cancellation of shares 2 decreases caused by the issuance of shares and/or share dividends 2 Increases caused by the repurchase and or cancellation of shares