11-1B - Basic Cash Flow Statement The financial statements of Safety First are presented below: Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets Safety First Balance Sheet As at December 31 2024 $2,600 500 2,500 21,000 (3.800) $22.800 2023 $500 700 2,300 17,000 (3.000) $17.500 Accounts payable Income taxes payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $200 400 2,000 200 20,000 $22.800 $600 200 0 100 16,600 $17.500 Safety First Income Statement For the Year Ended December 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $51,000 29.000 22,000 15.000 7,000 100 6,900 2.000 $4.900 Additional information: 1.) Operating expenses are composed of: Depreciation $1,800; Salaries $12,000; Loss on Sale of Equipment $400; other operating expenses $800. 2.) Other operating expenses are cash expenses. 3.) Equipment was purchased during the year for $7,000 cash. 4.) Equipment was sold for cash during the year. The original cost of the equipment was $3,000, and the accumulated depreciation was $1,000. 5.) Dividends were declared and paid during the year. Required: Prepare a cash flow statement using the direct method or indirect method or both (depending on what your instructor assigns)