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 $ 33,000 303,960 $1,109,800 551,000 $ 558,800 336,960 $ 221,840 9,680 $ 212,160 25,360 $ 186,800 Cash ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 $ 102,680 $ 162,640 Accounts receivable 136,600 102,160* Merchandise inventory 604,200 556,600 Prepaid expenses 11,950 13,000 Equipment 355,480 237,400 Accumulated depreciation 68,560 89,560 Accounts payable 195,510 285,440 Current notes payable 13,400 5,000 Notes payable 210,000 118,600 Common shares 441,800 341,000 Retained earnings 281,640 232,200 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $9,680. 2. Paid $68,480 to reduce a long-term note payable. 3. Equipment costing $96,000, with accumulated depreciation of $54,000, is sold for cash. 4. Equipment costing $214,080 is purchased by paying cash of $54,200 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 $137,360. Cash flows from operating activities: ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Adjustments to reconcile profit to net cash inflows from operating activities: Cash flows from investing activities: Cash flows from financing activities: $ 0 0