LAG Network Inc.'s balance sheet and income statement are as follows: $ 937,600 565,200 $ 372,400 LAG Network Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses : Depreciation expense $ 25,200 Other expenses 241,800 Total operating expenses Profit from operations Income taxes Profit 267,000 $ 105,400 27,600 $ 77,800 LAG Network Inc. Comparative Balance Sheet Information December 31 Assets 2020 2019 Cash $ 81,280 $ 56,200 Accounts receivable 51,400 39,400 Merchandise inventory 280,120 260,400 Equipment 163,400 140,200 Accumulated depreciation (80,800) (55,600) Total assets $ 495,400 $ 440,600 Liabilities and Equity Accounts payable $ 40,200 $ 52,800 Income taxes payable 20,600 19,200 Common shares 372,000 324,000 Retained earnings 62,600 44,600 Total liabilities and equity $ 495,400 $ 440,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $23,200 cash. b. 19,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $59,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. c. All purchases of merchandise are on credit d. All debits to accounts payable result from payments for merchandise e. Other operating expenses are cash expenses. 1. The only decrease in income taxes payable is for payment of taxes. 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.) LAG NETWORK INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: $ 0 Cash flows from investing activities: 0 Cash flows from financing activities: 0 $ 0