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ICE Driling Inc's balance sheet Information and Income statement are as follows: 'Adational information regarding ICE Driting's activities dunng 2023 1. Loss on sale of equipment is $11,280 2. Paid $70,080 to reduce a long-term note payable 3. Equipment costurg $104,000, with accumulated depreciation of $62,000, is sold for casen 4. Equipment costing $215,680 is purchased by paying cash of $55,800 and signing a iong-term not payoble for the balance 5. Bortowed 98,400 by signing a snort-term note poyabie 6. Issued 10,080 common shares for casti at $10 per share. 7. Detchared and paid cash dividends of $138$60 Pequired: Required: Prepare a statement of cash flows for 2023 that reports the cash inflows and outflows from operating activities according to the indiract method (I lst anv deduction in cash and cash outflows as neaatlve amounts.) Analysis Component: Merchandise inventory, Prepald Expenses, Notes Payable, and Common Shares are some of the accounts that changed during 2023. Indicate what transactions likely caused each of these accounts to increase and/or decrease. (You moy celect more than one answer. Single cilck the box with the question mark to produce a check mark for a correct answer and double click the box with the questlon mark to empty the box for a wrong answer.) Merchandse inventory increases caused by the purchase of merchandise decreases caused by the purchase of merchandise decreases caused by the sale of merchandise increases caused by the sale of merchandise Prepaid expenses: Increases caused by the putchase of prepoid items, that 15 , such as the payment of rent or insurance in advance decreases caused by the use of prepald expenses decreases caused by the purchase of prepald items, that is, such as the payment of rent or insurance in odvance increases caused by the use of prepald expenses Notes payable: increases coused by the issuance of debt (borrowing? defcreakes coused by pinctpot poyments Gecreases caused by the sacuanct of debr foorrowing) 2 increases caused by principol poyments ? increases catsed by the sale of merchandise? Prepald expenses increases caused by the purchase of prepaid items, that is, such as the payment of rent or insurance in advance decreases caused by the use of prepald expenses decreases caused by the purchase of prepald items, that is, such as the payment of rent or insurance in advance increases caused by the use of prepald expenses Notes payable: : increases caused by the issubnce of debt (borrowing) ? decreases caused by principat payments ? decreases caused by the issuance of debt (borrowing) 2 increases caused by principal payments Common shares: ? increases caused by the issuance of shares andior share dividends ? decreases coused by the repurchase andior cancellation of shares ? decreases caused by the issuance of shares andior share dividends 2 increases caused by the repurchase andior canceliation of shares

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