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Problem 16-10A Preparing the statement of cash flows (direct method) LO7 Lock \& Key Inc. began operations on January 1, 2019. Its post-closing trial balance at December 31,2019 and 2020 , is shown below along with some other information. Other information regarding Lock \& Key Inc. and its activities during 2020: 1. Assume all accounts have normal balances. 2. Cash dividends were declared and paid during the year. 3. Equipment was sold for cash equal to its book value. Other information: a. All accounts payable balances result from merchandise purchases. b. All sales are credit sales. c. All credits to accounts receivable are receipts from customers. d. All debits to accounts payable result from payments for merchandise. Other information: a. All accounts payable balances result from merchandise purchases. b. All sales are credit sales. c. All credits to accounts receivable are receipts from customers. d. All debits to accounts payable result from payments for merchandise. e. All other expenses are cash expenses. 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 and loss as negative amounts. Enter amounts in thousands, not in dollar.) \begin{tabular}{|l|l|l|} \hline LOCK \& KEY INC. \\ \hline Statement of Cash Flows \\ \hline Cash flows from operating activities: & December 31,2020 \\ \hline & & \\ \hline \end{tabular}