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Problem 16-1B Preparing the statement of cash flows (indirect method) L L05, 6 excel CHECK FIGURE: Net cash inflow from operating activities = $168,168 MED Supplies Inc., a software retailer, recently completed its 2020 operations. The following information is available: MED Supplies Inc. MED Supplies Inc. Income Statement Comparative Balance Sheet Information For Year Ended December 31, 2020 December 31 Sales....... $1,365,840 2020 2019 Cost of goods sold......... 624,960 Cash.. $120,792 $ 71,232 Gross profit.......... $ 740,880 Accounts receivable.............. 43,512 52,080 Operating expenses: Merchandise inventory.......... 392,784 313,320 Depreciation expense.......... $ 39,648 Equipment.......... 236,208 171,360 Other expenses.................... 402,696 Accumulated depreciation..... 108,192 68,544 Total operating expenses..... 442,344 Accounts payable.................. 86,184 79,800 Profit from operations............... $ 298,536 Income taxes payable........ 10,080 15,120 Income taxes......... . . ..... 100,464 Common shares.................... 463,680 369,600 Profit...... $ 198,072 Retained earnings.................. 125,160 74,928 Additional information regarding MED Supplies Inc.'s activities during 2020: 1. Equipment was purchased for $64,848 cash. Screenshot 2. Issued 3,360 common shares for cash at $28 per share.Depreciation expense.......... $ 39,648 Equipment............ 236,208 171,360 Other expenses. 402,696 Accumulated depreciation..... 108,192 68,544 Total operating expenses..... 442,344 Accounts payable............... 86,184 79,800 Profit from operations............... $ 298,536 Income taxes payable.......... 10,080 15,120 Income taxes.. 100,464 Common shares.... 463,680 369,600 Profit. $ 198,072 Retained earnings............... 125,160 74,928 Additional information regarding MED Supplies Inc.'s activities during 2020: 1. Equipment was purchased for $64,848 cash. 2. Issued 3,360 common shares for cash at $28 per share. 3. Declared and paid $ 147,840 of cash dividends during the year. Required Prepare a statement of cash flows for 2020 that reports the cash inflows and outflows from operating activities according to the indirect method. Show your supporting calculations. Analysis Component: The net increase in cash during 2020 for MED Supplies Inc. was $49,560. Briefly explain what caused this change using the statement of cash flows prepared above