Preparing statement of cash flows (indirect method)

LEMS Problem 16-1B Preparing the statement of cash flows (indirect method) LO5, 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. Income Statement MED Supplies Inc. For Year Ended December 31, 2020 Comparative Balance Sheet Information December 31 Sales $1,365,840 2020 2019 Cost of goods sold. 624,960 Cash... $120,792 Gross profit.... $ 740,880 -Accounts receivable... $ 71,232 52,080 392,784 313,320 43,512 Operating expenses: Merchandise inventory. Depreciation expense. $ 39,648 Equipment.. 236,208 171,360 Other expenses. 402,696 Accumulated depreciation. 108,192 68,544 Total operating expenses... Profit from operations. 442,344 Accounts payable. 86,184 79,800 $ 298,536 LIncome taxes payable. 10,080 15,120 Income taxes. Profit...... 100,464 Common shares. 463,680 369,600 74,928 $198,072 Retained earnings. 125,160 Additional information regarding MED Supplies Inc.'s activities during 2020: I 1. Equipment was purchased for $64,848 cash. F 2. Issued 3,360 common shares for cash at $28 per share. F 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 operat- ing 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 ex- plain what caused this change using the statement of cash flows prepared above. mile 1