These are the financial statements of Bauers, Inc.:

Additional Information:1. A building with a cost of $8,286 (thousand) was sold at book value.2. No equipment was sold during the period.

Required:

A. Prepare the operating section of the statement of cash flows using the direct method.B. Prepare the statement of cash flows using the indirect method.C. Discuss the relative benefits of the direct method.

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BAUERS, Inc. Balance Sheet December 31, 2019. and 2018 (in thousands) Cash Accounts receivable Inventories Prepaid expenses Investments held for sale Land Buildings Equipment Accumulated depreciation Total assets Notes payable to banks Trade accounts payable Accrued payroll items Accrued insurance Other accrued expenses Dividends payable Long-term debt 2018 $ 6,071 82,266 160,894 11,955 10,340 4,879 5,523 12,303 41,571 222,576 208,513 11,069 3,935 (155.546) (144,192) $345.959 $374.921 $ 10,000 Common stock Capital in excess of par value Retained earnings Treasury stock 2019 $ 2,180 78,213 158,330 14,152 11,786 17,424 8,424 $ 5,000 19,087 11,775 18,608 9,359 1,089 1,071 63,573 74,254 69,674 69,674 30,290 30,290 131,482 141,111 (11,917) (5.326) Total liabilities and shareholders' equity $345.959 $374.921