The following balance sheet and income statement data were taken from the records of L. L. Beeno
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Prepare the operating section of the statement of cash flows, and present it under both the direct and indirect methods.
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2018 2017 BALANCE SHEET $ 3,000 $ 2,800 Cash 5,600 4,500 Accounts receivable 7,800 Inventory 7,500 Prepaid insurance 600 900 $16,700 $16,000 Total current assets Equipment (net) 29,000 26,000 $ 42,000 $45,700 Total $ 5,600 $ 7,300 Accounts payable Salaries and wages payable 4,500 3,400 Total current liabilities $10,100 $10,700 Bonds payable (net) 14,000 14,800 5,000 Common stock 5,000 Retained earnings 16,600 11,500 Total $45,700 $42,000 INCOME STATEMENT $47,000 Sales revenues Cost of goods sold 25,000 Gross profit $2,000 Salaries and wage expense (6,200) Insurance expense (4,200) Interest expense (1,600) Depreciation expense (3,300) $ 6,700 Net income before taxes Income tax expense 1,200 $ 5,500 Net income
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