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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, 2020 Sales
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 $1,110,400 554,000 $ 556,400 $ 36,000 304,560 ICE Drilling Inc. Comparative Balance Sheet Information 340,560 $ 215,840 10,280 $ 205,560 25,960 $ 179,600 December 31 2020 Cash $ 105,680 2019 $ 165,640 Accounts receivable 139,600 105,160 Merchandise inventory 607,200 559,600 Prepaid expenses 11,980 14,000 Equipment 356,080 240,400 Accumulated depreciation 71,560 92,560 Accounts payable 193,140 278,040 Current notes payable 16,400 8,000 Notes payable 210,000 119,200 Common shares 444,800 344,000 Retained earnings 284,640 243,000 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $10,280. 2. Paid $69,080 to reduce a long-term note payable. 3. Equipment costing $99,000, with accumulated depreciation of $57,000, is sold for cash. 4. Equipment costing $214,680 is purchased by paying cash of $54,800 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 $137,960. 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 any deduction in cash and cash outflows as negative amounts.)
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