Required:- Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method.

1 LAG Network Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 25 , 200 Other expenses 215 800 Total operating expenses Profit from operations Income taxes $ 920,600 548 200 $ 372,400 ts eBook 241,000 $ 131 400 14 600 Print Profit $116,800 References LAG Network Inc. Comparative Balance Sheet Information December 31 2020 2019 Assets Cash $ 81 110 $ 52,800 Accounts receivable 40 400 36,800 Merchandise inventory 287790 235, 800 Equipment 146,400 136, 800 Accumulated depreciation (63 800) (38,600) Total assets $ 491, 900 $ 423, 600 Liabilities and Equity Accounts payable 23, 200 $ 35,800 Income taxes payable GOO 2,200 Common shares 355,000 349,500 Retained earnings 110, 100 36, 100 Total liabilities and equity $491,900 $ 423,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $9,600 cash, b. 2,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $42,800 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 Adjustments to reconcile profit to net cash inflows from operating activities Cash flows from investing activities