$11)$ Comparative financial statements for Tomtric Company follow:

Tomtric Company

Balance Sheets

December $31,2018$ and $2019$

Assets $20182019$

Current assets:

Cash $18,00015,000$

Accounts receivable $25,00022,000$

Inventory $22,00020,000$

Prepaid expenses $10,00014,000$

Total current assets $75,00071,000$

Long$-$term assets $25,0007,000$

Property, plant, and equipment $80,00077,000$

Less: Accumulated depreciation $(64,000)(61,000)$

Net property, plant, and equipment $16,00016,000$

Total assets $116,00094,000$

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $8,0006,000$

Accrued liabilities $15,0006,400$

Total current liabilities $23,00012,400$

Bonds payable $18,00012,000$

Deferred tax liability $15,0004,000$

Total liabilities $56,00028,400$

Stockholders' equity:

Common stock $20,00030,000$

Retained earnings $40,00035,600$

Total stockholders' equity $60,00065,600$

Total liabilities and stockholders' equTomtric Company

Income Statement

For the year ended December $31,2019$

Sales $$70,000$

Cost of goods sold $40,000$

Gross margin $30,000$

Depreciation expense $5,000$

Other operating expenses $15,000$

Operating income $10,000$

Loss on sale of equipment $4,000$

Income before taxes $6,000$

Income tax expense $2,400$

Net income $$3,600$

Additional data on activities during $2019$ are as follows:

During $2019,$ Tomtric Company sold used equipment for $$3,000$ that had cost $$15,000$ with accumulated depreciation of $$8,000.$

New equipment was purchased for $$12,000$ cash.

Cash dividends totaling $$8,000$ were paid.

Long$-$term investments that had cost $$18,000$ when purchased were sold for $$18,000.$

Common stock was issued for $$10,000.$

Required:

a$.$ Prepare the operating activities section of the statement of cash flows using the indirect method.

b$.$ Prepare the operating activities section of the statement of cash flows using the direct method.

c$.$ Prepare the statement of cash flows using the indirect method.