LAG Network Inc.s balance sheet and income statement are as follows:

LAG Network Inc.
Income Statement
For Year Ended December 31, 2020
Sales				$	934,600
Cost of goods sold					562,200
Gross profit				$	372,400
Operating expenses:
Depreciation expense	$	25,200
Other expenses		238,800
Total operating expenses					264,000
Profit from operations				$	108,400
Income taxes					24,600
Profit				$	83,800

LAG Network Inc.
Comparative Balance Sheet Information
	December 31
Assets	2020				2019
Cash	$	81,250			$	55,600
Accounts receivable		48,400				38,800
Merchandise inventory		281,650				256,200
Equipment		160,400				139,600
Accumulated depreciation		(77,800	)			(52,600	)
Total assets	$	493,900			$	437,600
Liabilities and Equity
Accounts payable	$	37,200			$	49,800
Income taxes payable		17,600				16,200
Common shares		369,000				328,500
Retained earnings		70,100				43,100
Total liabilities and equity	$	493,900			$	437,600

Additional information regarding LAG Network Inc.s activities during 2020:

1. Equipment is purchased for $20,800 cash.
2. 16,200 common shares are issued for cash at $2.50 per share.
3. Declared and paid $56,800 of cash dividends during the year.

Other information regarding LAG Network Inc.:

1. All sales are credit sales.
2. All credits to accounts receivable are receipts from customers.
3. All purchases of merchandise are on credit.
4. All debits to accounts payable result from payments for merchandise.
5. Other operating expenses are cash expenses.
6. 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.)