$1.$ Hartman, Inc. has prepared the following comparative balance sheets for $2017$ and $2018$:

$20182017$

Cash $ $282,000$ $ $153,000$

Accounts receivable $139,000117,000$

Inventory $150,000180,000$

Prepaid expenses $18,00027,000$

Plant assets $1,295,0001,050,000$

Accumulated depreciation $(450,000)(375,000)$

Patent $153,000174,000$

$$1,587,000$ $$1,326,000$

Accounts payable $ $153,000$ $ $168,000$

Accrued liabilities $60,00042,000$

Mortgage payable $450,000$

Preferred stock $525,000$

Additional paid$-$in capital$$preferred $120,000$

Common stock $600,000600,000$

Retained earnings $129,00066,000$

$$1,587,000$ $$1,326,000$

$1.$ The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

$2.$ The Retained Earnings account has been debited for dividends of $$138,000$ and credited for the net income for the year.

$3.$ The Patent account was credited for amortization expense of $$21,000.$

$4.$ The Operating expenses include the depreciation and amortization expense.

The income statement for $2018$ is as follows:

Sales revenue $$1,980,000$

Cost of sales $1,089,000$

Gross profit $891,000$

Operating expenses $690,000$

Net income $ $201,000$

Instructions

$($a$)$ From the information above, prepare a statement of cash flows $($indirect method$)$ for Hartman, Inc. for the year ended December $31,2018.$

$($b$)$ From the information above, prepare a schedule of cash provided by operating activities using the direct method.