LAG Network Inc.$\text{'}$s balance sheet and income statement are as follows: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 $ $1,110,800$

Cost of goods sold $556,000$

Gross profit $ $554,800$

Operating expenses:

Depreciation expense $ $38,000$

Other expenses $304,960$

Total operating expenses $342,960$

Profit from operations $ $211,840$

Loss on sale of equipment $10,680$

Profit before taxes $ $201,160$

Income taxes $26,360$

Profit $ $174,800$

ICE Drilling Inc.

Comparative Balance Sheet Information

December $31$

$20202019$

Cash $ $107,680$ $ $167,640$

Accounts receivable $141,600107,160$

Merchandise inventory $609,200561,600$

Prepaid expenses $12,00014,000$

Equipment $356,480242,400$

Accumulated depreciation $73,56094,560$

Accounts payable $191,560272,440$

Current notes payable $18,40010,000$

Notes payable $210,000119,600$

Common shares $446,800346,000$

Retained earnings $286,640250,200$

Additional information regarding ICE Drilling$$s activities during $2020$:

Loss on sale of equipment is $$10,680.$

Paid $$69,480$ to reduce a long$-$term note payable.

Equipment costing $$101,000,$ with accumulated depreciation of $$59,000,$ is sold for cash.

Equipment costing $$215,080$ is purchased by paying cash of $$55,200$ and signing a long$-$term note payable for the balance.

Borrowed $$8,400$ by signing a short$-$term note payable.

Issued $10,080$ common shares for cash at $$10$ per share.

Declared and paid cash dividends of $$138,360.$

Other information:

All sales are credit sales.

All credits to accounts receivable in the period are receipts from customers.

Purchases of merchandise are on credit.

All debits to accounts payable in the period result from payments for merchandise.

The only decrease in income taxes payable is for payment of taxes.

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.$)$