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 $1,113,000 567,000 $ 546,000 $ 49,000 307,160 ICE Drilling Inc. Comparative Balance Sheet Information 356,160 $ 189,840 12,880 $ 176,960 28,560 $ 148,400 Cash Accounts receivable Merchandise inventory 620,200 December 31 2020 $ 127,680 152,600 2019 $ 178,640 118,160 572,600 Prepaid expenses 12,110 21,000 Equipment 358,680 253,400 Accumulated depreciation 84,560 105,560 Accounts payable 191,870 248,640 Current notes payable 29,400 21,000 Notes payable 210,000 121,800 Common shares 457,800 357,000 Retained earnings 297,640 289,800 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $12,880. 2. Paid $71,680 to reduce a long-term note payable. 3. Equipment costing $112,000, with accumulated depreciation of $70,000, is sold for cash. 4. Equipment costing $217,280 is purchased by paying cash of $57,400 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 paid cash dividends of $140,560. 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: 0 0 0 $ 0 EA $ 0