Refer to the information in Problem 17-5A. Prepare a statement of cash flows for 2014 using the direct method to report cash inflows and outflows from operating activities.

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 PrepaidExpenses.

ICE Drilling Inc. Comparative Balance Sheet Information ICE Drilling Inc. Income Statement December 31 For Year Ended December 31, 2014 2014 2013 Sales $1,111,600 Cash $120,680 $171,640 Cost of goods sold Gross profit. Operating expenses: Depreciation expense 560,000 $ 551,600 Accounts receivable 145,600 111,160 Merchandise inventory. Prepaid expenses. Equipment. Accumulated depreciation. Accounts payable. Short-term notes payable. 613,200 565,600 12,040 14,000 $ 42,000 357,280 246,400 Other expenses... 305,760 77,560 98,560 Total operating expenses Loss on sale of equipment. Income from operations. 347,760 197,400 261,240 11,480 $ 192,360 27,160 $ 165,200 22,400 14,000 Long-term notes payable 210,000 120,400 Income taxes.. Common shares. 450,800 290,640 350,000 Net income..... Retained earnings.. 264,600