ICE Drilling Inc.'s balance sheet Information and Income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of equipment Profit before taxes Income taxes Profit $1,111,800 561,000 $ 550,800 $ 43,000 305,960 ICE Drilling Inc. Comparative Balance Sheet Information 348,960 $ 201,840 11,680 $ 190,160 27,360 $ 162,800 Cash Accounts receivable December 31 2020 $ 121,680 146,600 2019 $ 172,640 112,160 Merchandise inventory 614,200 566,600 Prepaid expenses 12,050 15,000 Equipment 357,480 247,400 Accumulated depreciation 78,560 99,560 Accounts payable 196,610 259,440 Current notes payable 23,400 15,000 Notes payable 210,000 120,600 Common shares 451,800 351,000 Retained earnings 291,640 268,200 Additional Information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $11,680. 2. Paid $70,480 to reduce a long-term note payable. 3. Equipment costing $106,000, with accumulated depreciation of $64,000, is sold for cash. 4. Equipment costing $216,080 is purchased by paying cash of $56,200 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 $139,360. 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.) ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Cash flows from investing activities: Cash flows from financing activities