ICE Drilling Inc.'s balance sheet information and income statement are as follows: 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. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method. (List ony deduction in cesh and cash outflows as negotive omounts.) Analysls Component: Merchandise Inventory, Prepald Expenses, Notes Payable, and Common Shares are some of the accounts that changed during 2020. Indicate what transactions likely caused each of these accounts to increase andior decrease. (You may select more than one answer. Single ellek the box whth the quettlon mark to produce a check mark for a correct answer and double click the box whth the queston mark to empty the box for a wrong answer.) Merchandise imventory: Incresses caused by the purchase of merchandise decreases caused by the purchase of merchandise decreases caused by the sale of merchandise Increases caused by the sale of merchandise Prepald expenses: ? increases caused by the purchase of presald items, 1.e., such as the payment of rent or insurance in advance 7 decretser coused by the use of prepald expnses ? docressef caused by the purchbse of prepald items. 1.e., such as the payment of rent or insurance in advance 2 increases caused by the use of prepaid experises