1. Income statement and partial balance sheet information of ABC, Inc. is presented below. Create the operating section of the statement of cash flows using BOTH the indirect and direct methods. 900,000 (400,000) 500,000 Sales Cost of goods sold Gross margin Less operating items: Salaries expense Depreciation expense +/- Non-operating items Loss on sale of equipment Net income (100,000) (200,000) (100,000) 100,000 Cash Accounts receivable Inventory Accounts payable 2019 10,000 5,000 10,000 10,000 2018 3,000 35,000 20,000 30,000 2. Use the following company information to calculate the net cash provided or used by investing activities: (a) Equipment with a book value of $125,000 and an original cost of $220,000 was sold at a gain of $22,000 (b) Paid $49,000 cash for a new truck. (c) Land costing $30,000 was sold realizing a $4,000 loss. (d) Purchased treasury stock for $53,000 cash. (e) Long-term investments in stock are sold for $41,000 cash, realizing a gain of $3,500