1) Prepare the operating activity section of the statement of cash flows using direct method

2) Prepare a statement of cash flows using the indirect method

Burris Corporation's balance sheet accounts as of December 31, 2018 and 2017 and information relating to 2018 activities are presented below. Dehit Balances 12/31/2018 12/31/2017 Information relating to 2018 activities Cash $80,000 $51,000 follows: Accounts Receivable 145.000 130,000 1. Equipment that cost $10,000 and was Merchandise Inventory 75.000 61.000 Investments Available-for-sale) 40% depreciated was sold in 2018. 55.000 85.000 Prepaid Insurance 8.000 10,000 2. Cash dividends were declared and paid Buildings and Equipment 215.000 193,000 during the year. Land 40.000 25,000 3. Land was paid entirely by issuance of Totals $618.000 S555.000 stocks. Credit Balances 4. Investments that cost $35,000 were Allowance for Doubtful Accounts $10,000 $ 8.000 Accu. Depreciation sold during the year. Building & Equip 58.000 Accrued Liabilities 2,000 5. Bad debts write-offs were $5,000 Accounts Payable 70,000 63,000 during the year. Income Taxes Payable 12.000 10,000 Long-Term Notes Payable 62.000 70,000 Common Stock 316,000 265.000 Retained Earnings 89.2001 95.000 Totals $618,000 $555.000 800 $950,000 600,000 350,000 250,000 100.000 Burris 2018 income statement is as follows. Sales Less: Cost of goods sold Gross profit Less: Operating expenses (includes dep. exp. and bad debt exp.) Income from operations Other revenues and expenses Gain on sale of investments Loss on sale of equipment Income before taxes Income tax expense Net income $17.000 (5.000) 12.000 112.000 45,000 S67.000 Required: (1) Prepare the operating activity section of the statement of cash flows using direct method (2) Prepare a statement of cash flows using the indirect method