LAG Network Inc.'s balance sheet and income statement are as follows: Sales LAG Network Inc. Income Statement For Year Ended December 31, 2020 Cost of goods sold Gross profit Operating expenses: Depreciation expense Other expenses Total operating expenses Profit from operations Income taxes Profit $ 25,200 241,800 $ 937,600 565,200 $ 372,400 267,000 $ 105,400 27,600 $ 77,800 Assets. LAG Network Inc. Comparative Balance Sheet Information December 31 2020 2019 $ 81,280 $ 56,200 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable 51,400 280,120 163,400 (80,800) $495,400 $ 40,200 20,600 Income taxes payable Common shares 372,000 Retained earnings 62,600 Total liabilities and equity $495,400 39,400 260,400 140,200 (55,600) $ 440,600 $ 52,800 19,200 324,000 44,600 $ 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. 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 activities. (List any deduction in cash and cash outflows as negative amounts.) Answer is not complete. LAG NETWORK INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: Cash received from customers Cash paid for merchandise inventory Cash paid for other operating expenses Cash paid for income taxes $ 925,600 (597,520) (241,800) ( (26,200) ( $ 60,080 Cash flows from investing activities: Cash paid for equipment (23,200) (23,200) Cash flows from financing activities: Cash received from issuing common shares 48,000 Cash paid for dividends (59,800) Net cash outflow from financing activities Net increase in cash Cash balance at beginning of 2020 Cash balance at end of 2020 (11,800) $ 25,080 56,200 $ 81,280