LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network 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 Income taxes Profit $ 25,200 245,800 $ 935,600 563,200 $ 372,400 271,000 $ 101,400 25,600 $ 75,800 LAG Network Inc. Comparative Balance Sheet Information December 31 2020 2019 Assets Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable $ 81,260 $ 55,800 49,400 275,140 161,400 (78,800) $ 488,400 $ 38,200 18,600 370,000 61,600 Common shares Retained earnings Total liabilities and equity $ 488,400 39,000 257,600 139,800 (53,600) $ 438,600 $ 50,800 17,200 327,000 43,600 $ 438,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $21,600 cash. b. 17,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $57,800 of cash dividends during the year. Required: Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to indirect method. (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: Profit $ 75,800 Adjustments to reconcile profit to net cash inflows from operating activities: Depreciation expense Increase in accounts receivable Increase in merchandise inventory Decrease in accounts payable Increase in income taxes payable Cash flows from investing activities: 25,200 (10,400) (17,540) (12,600) 1,400 (21,600) Cash flows from financing activities: Cash received from issuing common shares $ 43,000 Cash paid for cash dividends. (57,800) Net increase in cash Cash balance at beginning of 2020 Cash balance at end of 2020 $ 61,860 (21,600) (14,800) $ 25,460 55,800 $ 81,260