To prepare the statement of cash flows, accountants for Pentech, Inc., have summarized \(19 \mathrm{X} 3\) activity in two accounts as follows:

\section*{Required}
1. Prepare the statement of cash flows of Pentech, Inc., for the year ended December 31, 19X3, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities.
2. Use the following data from Pentech's 19X3 income statement and (selected) balance sheet, on page 772 , to prepare a supplementary schedule showing cash flows from operating activities by the indirect method. All activity in the current accounts results from operations.

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Cash Common Stock Beginning balance 53,600 Payments on accounts Beginning balance 84,400 Collection of loan 13,000 Sale of investment 8,200 Receipts of interest 12,600 Collections from customers Issuance of common stock 47,300 payable Payments of dividends Payments of salaries and wages 678,700 Payments of interest Purchase of equipment Payments of operating 399,100 Issuance for cash 47,300 27,200 Issuance to acquire land 80,100 Issuance to retire 143,800 long-term debt 19,000 26,900 Ending balance 230,800 31,400 Receipts of dividends 4,500 expenses 34,300 Payment of long-term debt 41,300 Purchase of treasury stock 26,400 Payment of income tax 18,900 Ending balance 68,600