LAG Network Inc.'s balance sheet and income statement are as follows: $920,600 548, 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 224,800 Total operating expenses Profit from operations Income taxes Profit 250, eee $ 122,400 14,600 $ 107,800 LAG Network Inc. Comnarative Balance Sheet Information LAG Network Inc. Comparative Balance Sheet Information December 31 Assets 2020 2019 Cash $ 81, 110 $ 52,800 Accounts receivable 40,400 36,800 Merchandise inventory 278, 790 235,800 Equipment 146,400 136,800 Accumulated depreciation (63,800) (38,600) Total assets $ 482,900 $ 423,600 Liabilities and Equity Accounts payable $ 23,200 $ 35,808 Income taxes payable 3,600 2,200 Common shares 355,000 349,500 101, 100 36,100 Retained earnings $ 482,900 $ 423,600 Total liabilities and equity Additional information regarding LAG Network Inc.'s activities during 2020: Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $9,600 cash. b.2.200 common shares are issued for cash at $2.50 per share, c. Declared and paid $42,800 of cash dividends during the year. ped Other information regarding LAG Network Inc. int 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. f. 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 activ any deduction in cash and cash outflows as negative amounts.) Heo Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities (La 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 Cash flows from financing activities