$($ANSWER QUESTION WITH DIRECT METHOD$)($NOT INDIRECT METHOD$)$

LAG Network Inc.$\text{'}$s balance sheet and income statement are as follows:

Additional information regarding LAG Network Inc.$\text{'}$s activities during $2020$:

a$.$ Equipment is purchased for $$17,600$ cash.

b$.12,200$ common shares are issued for cash at $$2\mathrm{.}50$ per share.

c$.$ Declared and paid $$52,800$ 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 and outflows from operating activities. $($List

any deduction in cash and cash outflows as negative amounts.$)$