Sales ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Cost of goods sold Gross profit Operating expenses: $1,113,400 569,000 $ 544,400 Depreciation expense Other expenses Total operating expenses Profit from operations Loss on sale of $ 51,000 307,560 358,560 $ 185,840 13,280 equipment Profit before taxes Income taxes $ 172,560 28,960 Profit $ 143,600 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 Cash $129,680 $180,640 Accounts receivable 154,600 120,160 Merchandise inventory 622,200 574,600 Prepaid expenses 12,130 23,000 Equipment 359,080 255,400 Accumulated 86,560 107,560 depreciation Accounts payable 190,290 245,040 Current notes payable 31,400 23,000 Notes payable 210,000 122,200 Common shares 459,800 359,000 Retained earnings 299,640 297,000 Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $13,280. 2. Paid $72,080 to reduce a long-term note payable. 3. Equipment costing $114,000, with accumulated depreciation of $72,000, is sold for cash. 4. Equipment costing $217,680 is purchased by paying cash of $57,800 and signing a long-term note payable for the balance. 5. Borrowed $8,400 by signing a short-term note payable. 6. Issued 10,080 common shares for cash at $10 per share. 7. Declared and paid cash dividends of $140,960. 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.)