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ICE Drilling Inc.s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2017 Sales $

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

ICE Drilling Inc.
Income Statement
For Year Ended December 31, 2017
Sales $ 1,113,600
Cost of goods sold 570,000

Gross profit $ 543,600
Operating expenses:
Depreciation expense $ 52,000
Other expenses 307,760

Total operating expenses 359,760
Profit from operations 183,840
Loss on sale of equipment 13,480

Profit before taxes $ 170,360
Income taxes 29,160

Profit $ 141,200

ICE Drilling Inc.
Comparative Balance Sheet Information
December 31
2017 2016
Cash $ 130,680 $ 181,640
Accounts receivable 155,600 121,160
Merchandise inventory 623,200 575,600
Prepaid expenses 12,140 24,000
Equipment 359,280 256,400
Accumulated depreciation 87,560 108,560
Accounts payable 189,500 243,240
Current notes payable 32,400 24,000
Notes payable 210,000 122,400
Common shares 460,800 360,000
Retained earnings 300,640 300,600

Additional information regarding ICE Drillings activities during 2017: 1. Loss on sale of equipment is $13,480. 2. Paid $72,280 to reduce a long-term note payable. 3. Equipment costing $115,000, with accumulated depreciation of $73,000, is sold for cash. 4. Equipment costing $217,880 is purchased by paying cash of $58,000 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 $141,160.

Required: Prepare a statement of cash flows for 2017 that reports the cash inflows and outflows from operating activities according to the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

ICE DRILLING INC.
Statement of Cash Flows
For Year Ended December 31, 2017
Cash flows from operating activities:
Adjustments to reconcile profit to net cash inflows from operating activities:
$0
Cash flows from investing activities:
0
Cash flows from financing activities:
0
$0

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