ICE Drilling Inc.s balance sheet information and income statement are as follows

Direct Method

ICE Drilling Inc.'s balance sheet information and income statement are as follows: $1, 111, 600 560,000 $ 551, 600 ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 42,000 Other expenses 305, 760 Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit $ 347, 760 203,840 11, 480 192, 360 27, 160 165, 200 $ ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $ 120, 680 $ 171, 640 Accounts receivable 145, 600 111, 160 Merchandise inventory 613, 200 565, 600 Prepaid expenses 12,040 14,000 Equipment 357, 280 246, 400 Accumulated depreciation 77,560 98,560 Accounts payable 197, 400 261, 240 Current notes payable 22, 400 14,000 Notes payable 210,000 120, 400 Common shares 450, 800 350,000 Retained earnings 290, 640 264, 600 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $11,480. 2. Paid $70,280 to reduce a long-term note payable. 3. Equipment costing $105,000, with accumulated depreciation of $63,000, is sold for cash. 4. Equipment costing $215,880 is purchased by paying cash of $56,000 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 5,600 common shares for cash at $18 per share. 7. Declared and paid cash dividends of $139,160. 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.)