Saved $ 932,609 560,209 $ 372,400 Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense $ 25,200 Other expenses 236,800 Total operating expenses Profit from operations Income taxes Profit 262,000 $ 110,400 22,600 $ 87,800 LAG Network Inc. Comparative Balance Sheet Information December 31 Assets 2020 2019 Cash 81,230 $ 55,200 Accounts receivable 46,400 38,400 Merchandise inventory 282,670 253,400 Equipment 158,400 139,209 Accumulated depreciation (75,800) (50, 600) Total assets $ 492,900 $ 435,600 Liabilities and Equity Accounts payable $ 35, 200 $ 47,800 Income taxes payable 15,600 14, 200 Common shares 367,000 331,500 Retained earnings 75,100 42,100 Total liabilities and equity $ 492,900 $ 435,600 of 1 Saved Common shares Retained earnings Total liabilities and equity 367,089 75,109 $ 492,909 331,500 42,100 $ 435,600 Additional information regarding LAG Network Inc.'s activities during 2020: a. Equipment is purchased for $19,200 cash. b. 14,200 common shares are issued for cash at $2.50 per share. c. Declared and paid $54,800 of cash dividends during the year. Other information regarding LAG Network Inc.: a. All sales are credit sales. b. All credits to accounts receivable are receipts from customers. C. All purchases of merchandise are on credit d. All debits to accounts payable result from payments for merchandise e. Other operating expenses are cash expenses f. 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 a any deduction in cash and cash outflows as negative amounts.) LAG NETWORK INC. Womauon regarding LAG Network Inc a. All sales are credit sales b. All credits to accounts receivable are receipts from customers c. All purchases of merchandise are on credit. d. All debits to accounts payable result from payments for merchandise e. Other operating expenses are cash expenses. 1. 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: Cash received from customers Cash paid for merchandise inventory Activate Go to Set