11-2B-Cash Flow Statement The financial statements of Kimmel Inc. are presented below: Kimmel Inc. Balance Sheet As at July 31 Cash Accounts receivable Inventory Prepaid insurance Building and equipment Accumulated depreciation Total assets 2024 $104,000 78,000 409,000 15,000 704,000 (219,000) $1,091,000 2023 $123,000 84,000 368,000 12,000 684,000 (215.000) $1.056.000 Accounts payable Salaries payable Income taxes payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $42,000 20,000 8,000 140,000 70,000 811.000 $1.091.000 $43,000 17,000 11,000 200,000 61,000 724,000 $1,056.000 Kimmel Inc. Income Statement For the Year Ended July 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $931,000 483.000 448,000 268.000 180,000 15.000 165,000 40,000 $125.000 Additional information: 1.) Operating expenses are composed of: Depreciation $35,000; Salaries $155,000; Loss on Sale of Equipment $4,000; other operating expenses $74,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $74,000 cash. 4.) Equipment was sold for cash during the year. The original cost of the equipment was $54,000, and the accumulated depreciation was $31.000. 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)