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

LAG Network Inc.
Income Statement
For Year Ended December 31, 2020
Sales				$	921,600
Cost of goods sold					549,200
Gross profit				$	372,400
Operating expenses:
Depreciation expense	$	25,200
Other expenses		225,800
Total operating expenses					251,000
Profit from operations				$	121,400
Income taxes					15,600
Profit				$	105,800

LAG Network Inc.
Comparative Balance Sheet Information
	December 31
Assets	2020				2019
Cash	$	81,120			$	53,000
Accounts receivable		41,400				37,000
Merchandise inventory		278,280				237,200
Equipment		147,400				137,000
Accumulated depreciation		(64,800	)			(39,600	)
Total assets	$	483,400			$	424,600
Liabilities and Equity
Accounts payable	$	24,200			$	36,800
Income taxes payable		4,600				3,200
Common shares		356,000				348,000
Retained earnings		98,600				36,600
Total liabilities and equity	$	483,400			$	424,600

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

1. Equipment is purchased for $10,400 cash.
2. 3,200 common shares are issued for cash at $2.50 per share.
3. Declared and paid $43,800 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.)

LAG NETWORK INC.
Statement of Cash Flows
For Year Ended December 31, 2020
Cash flows from operating activities:
Net cash inflow from operating activities		$0
Cash flows from investing activities:
Cash paid for equipment
Net cash inflow from investing activities		0
Cash flows from financing activities:
Cash received from issuing common shares
Cash paid for dividends
		0
		$0