Refer to the information in Problem 16-5B. Prepare a statement of cash flows for 2020 using the direct method to report cash inflows and outflows from operating activities.

Other information:

a. All sales were credit sales.

b. All credits to accounts receivable in the period were receipts from customers.

c. Purchases of merchandise were on credit.

d. All debits to accounts payable in the period resulted from payments for merchandise.

e. The other expenses were paid in advance and were initially debited to Prepaid Expenses.

Problem 16-5B

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Triple Flip Inc. Comparative Balance Sheet Information Triple Flip Inc. Income Statement For Year Ended December 31, 2020 December 31 Sales. 1,061,340 2020 2019 Cost of goods sold.. 573,300 Cash.. $133,770 $ 70,119 Gross profit. 488,040 Accounts receivable.. 72,618 88,935 Operating expenses: Merchandise inventory.. 445,410 480,396 Depreciation expense. 35,868 Prepaid expenses.. 16,758 18,816 Other expenses... 384,993 Equipment. Accumulated depreciation. Accounts payable. 272,685 211,680 Total operating expenses. 420,861 106,575 91,140 Profit from operations.. 67,179 115,101 120,981 Loss on sale of equipment. 2,058 Current notes payable. 16,905 11,025 Profit before taxes. 65,121 Notes payable . 110,250 80,850 Income taxes.. 9,261 Common shares 473,340 441,000 Profit 55,860 Retained earnings. 119,070 124,950