ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income...

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ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold $1,109,800 551,000 558,800 Gross profit Operating expenses: Depreciation expense Other expenses 24 $ 33,000 303,960 Total Profit from operations Loss on sale of equipment operating expenses 336,960 221,840 9,680 212,160 25,360 Profit before taxes Income taxes Profit $4 186,800 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 $ 102,680 136,600 604,200 11,950 $ 162,640 102,160 556,600 13,000 237,400 89,560 285,440 5,000 118,600 341,000 232,200 Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable 355,480 68,560 195,510 13,400 210,000 441,800 281,640 Common shares Retained earnings Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $9,680. 2. Paid $68,480 to reduce a long-term note payable. 3. Equipment costing $96,000, with accumulated depreciation of $54,000, is sold for cash. 4. Equipment costing $214,080 is purchased by paying cash of $54,200 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 $137,360. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. Purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes. f. The other expenses are paid in advance and are initially debited to Prepaid Expenses. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.) ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: 2$ Cash flows from investing activities: Cash flows from financing activities: $ $ ICE Drilling Inc.'s balance sheet information and income statement are as follows: ICE Drilling Inc. Income Statement For Year Ended December 31, 2020 Sales Cost of goods sold $1,109,800 551,000 558,800 Gross profit Operating expenses: Depreciation expense Other expenses 24 $ 33,000 303,960 Total Profit from operations Loss on sale of equipment operating expenses 336,960 221,840 9,680 212,160 25,360 Profit before taxes Income taxes Profit $4 186,800 ICE Drilling Inc. Comparative Balance Sheet Information December 31 2020 2019 $ 102,680 136,600 604,200 11,950 $ 162,640 102,160 556,600 13,000 237,400 89,560 285,440 5,000 118,600 341,000 232,200 Cash Accounts receivable Merchandise inventory Prepaid expenses Equipment Accumulated depreciation Accounts payable Current notes payable Notes payable 355,480 68,560 195,510 13,400 210,000 441,800 281,640 Common shares Retained earnings Additional information regarding ICE Drilling's activities during 2020: 1. Loss on sale of equipment is $9,680. 2. Paid $68,480 to reduce a long-term note payable. 3. Equipment costing $96,000, with accumulated depreciation of $54,000, is sold for cash. 4. Equipment costing $214,080 is purchased by paying cash of $54,200 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 $137,360. Other information: a. All sales are credit sales. b. All credits to accounts receivable in the period are receipts from customers. c. Purchases of merchandise are on credit. d. All debits to accounts payable in the period result from payments for merchandise. e. The only decrease in income taxes payable is for payment of taxes. f. The other expenses are paid in advance and are initially debited to Prepaid Expenses. Required: Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities. (List any deduction in cash and cash outflows as negative amounts.) ICE DRILLING INC. Statement of Cash Flows For Year Ended December 31, 2020 Cash flows from operating activities: 2$ Cash flows from investing activities: Cash flows from financing activities: $ $

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