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 $ 38,000 304,960 $1,110,800 556,000 $ 554,800 342,960 $ 211,840 10,680 $ 201,160 26,360 $ 174,800 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 $107,680 2019 $167,640 Cash Accounts receivable 141,600 107,160 Merchandise inventory 609,200 561,600 Prepaid expenses 12,000 14,000 Equipment 356,480 242,400 Accumulated depreciation 73,560 94,560 Accounts payable 191,560 272,440 Current notes payable 18,400 10,000 Notes payable 210,000 119,600 Common shares 446,800 346,000 Retained earnings 286,640 250,200 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $10,680. 2. Paid $69,480 to reduce a long-term note payable. 3. Equipment costing $101,000, with accumulated depreciation of $59,000, is sold for cash. 4. Equipment costing $215,080 is purchased by paying cash of $55,200 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 $138,360. 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.) Answer is not complete. ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Cash paid for income taxes $ 174,800 x Depreciation expense * 38,000 x Cash paid for equipment 10,680 x Cash borrowed on current notes payable x (34,440) Cash flows from investing activities: Cash paid for equipment $ (55,200) Cash received from sale of equipment 31,320 Cash flows from financing activities: Cash paid on notes payable. $ (69,480) Cash received from issuing common shares 100,800 Cash paid for dividends O (138,360) Net cash inflow from financing activities Net decrease in cash Cash balance at beginning of 2020 Cash balance at end of 2020 $ 189,040 (23,880) (107,040) $ 58,120 167,640 $ 225,760