1. Equipment costing $20,000 was sold for $5,000.

2. Among other items, the operating expenses includes depreciation expense.

3. Equipment was purchased during the year for $30,000 and was paid for by issuing $30,000 worth of common stock

4. Interest revenue of $1,500 was earned and received for a loan made in 2017.

5. Dividend revenue was received for common stock owned in Fully Invested Corporation

Prepare a full statement of cash flows using the direct method. Then prepare the operating section only using the indirect method.

2016 130,000 42,000 27,000 13,000 e 3 75,000 (56,000 15,000 246,000 2,000 1,500 7,500 45,000 Minnie's Movers, Ince Comparative Balance Sheet As of December 31 Assets 2017 Cashe 349,000 Accounts Receivables, net 55,000 Inventory 15.000 Prepaid Insurance 12,000 Long-term Assets Equipment 85,000 Accumulated Dept-- Equipment- (50,000) Note Receivable- 15.000 Total Assets 481,000 Liabilities Accounts payable 3,500 Dividends Payable 14,500 Interest Payable 2,000 Income tax payable 5,000 Long-term Liabilities Long-term Notes payable 50,000 Stockholders' Equity Common Stock 120,000 Retained Earnings 286,000 e Total Liab. & Stockholders' equity 481,000 e Income Statement for year ended 2017 Sales Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Interest Expense 2,500 Insurance Expense 3.000 e Other operating expenses (including depr) 194,500 Income from Operations Other Revenues and Expenses Gain on sale of equipment 1,000 Dividend Revenue 3,000 Interest Revenue 1,500 Income before taxes Income tax expense Net Income 90,000 100,000 246,000 S 950,000 450,000 500,000 200,000 300,000 5,500 305,500 105.000 e 200,500 S