PROBLEMS (cel Problem 16-1A Preparing the statement of cash flows (indirect method) LO5, 6 CHECK FIGURE: Net cash inflow from operating activities = $69,870 LAG Network Inc.'s balance sheet and income statement are as follows: LAG Network Inc. Income Statement For Year Ended December 31, 2020 LAG Network Inc. Comparative Balance Sheet Information $926,600 554,200 $372.400 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense Other expenses Total operating expense. Profit from operations Income taxes Proff December 31 2020 2019 $ 81,170 $ 54,000 40,400 37,200 288.730 245.000 152.400 138,000 169,800 (44.600) $492,900 $429,600 $ 25,200 227,800 253,000 $119,400 16,600 $102,800 Assets Cash Accounts receivable Merchandise inventory Equipment Accumulated depreciation Total assets Liabilities and Equity Accounts payable Income taxes payable Common shares. Retained earnings. Total liabilities and equity. $ 29,200 9,600 361,000 93,100 $492,900 $ 41,800 8.200 340,500 39.100 $429,600 Additional information regarding LAG Network Inc.'s activities during 2020: 2. Equipment is purchased for $14,400 cash. 6,8,200 common shares are issued for cash at $2,50 per share. Declared and paid $48,800 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: Assume that LAG Network Inc. had a loss instead of a profit. Does a loss mean that There will always be a cash outflow from operating activities on the statement of cash flows? och flows (direct method) LO7