LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement, For Year Ended December 31, 2020. Sales $939,600 567,200 Cost of goods sold Gross profit $ 372,400 Operating expenses: 279,000 $ 93,400 29,600 $ 63,800 Depreciation expense Other expenses Total operating expenses Profit from operations. Income taxes Profit 4 $ 25,200 253,800 LAG Network Inc. Comparative Balance Sheet Information 2020 $ 81,300 53,400 269,100 165,400 (82,800) Assets Cash Accounts receivable: Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares Retained earnings Total liabilities and equity December 31 $ 486,400 $ 42,200 22,600 374,000 47,600 $ 486,400 2019 $ 56,600 39,800 263,200 140,600 (57,600) $ 442,600 $ 54,800 21,200 321,000 45,600 $ 442,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $24,800 cash. b. 21,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $61,800 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 the Indirect method. (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 Profit $ 63,800 Adjustments to reconcile profit to net cash inflows from operating activities Depreciation expense 25,200 Increase in accounts receivable Increase in merchandise inventory Decrease in accounts payable Increase in income taxes payable Cash flows from investing activities: Cash paid for equipment Cash flows from financing activities $ 89,000 0