Problem 16-1B Preparing the statement of cash flows (indirect method) LO5, 6 eXcel CHECK FIGURE: Net cash inflow from operating activities = $168,168 MED Supplies Inc., a software retailer, recently completed its 2020 operations. The following information is available: MED Supplies Inc. Income Statement MED Supplies Inc Comparative Balance Sheet Information For Year Ended December 31, 2020 December 31 $1,365,840 2020 2019 $120,792 $ 71,232 624.960 $ 740.880 43,512 52.080 392,784 313,320 $ 39,648 236,208 171,360 Sales Cost of goods sold. Gross profit Operating expenses Depreciation expense Other expenses... Total operating expenses. Profit from operations Income taxes Profit 402696 Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Accounts payable Income taxes payable Common shares 108,192 68,544 79,800 442,344 $ 299.536 86,184 10,080 463,680 15.120 100,464 369,600 $198.072 Retained earnings 125,160 74928 Additional information regarding MED Supplies Inc.'s activities during 2020: 1. Equipment was purchased for $64,848 cash. 2. Issued 3,360 common shares for cash at $28 per share. 3. Declared and paid $147,840 of cash dividends during the year, Required Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operat- ing activities according to the indirect method. Show your supporting calculations Analysis Component: The net increase in cash during 2020 for MED Supplies Inc. was $49,560. Briefly ex- plain what caused this change using the statement of cash flows prepared above