2. Below are the balance sheets and income statement for Kinder Care Company. Kinder Care Company Balance Sheet 31-Dec 2023 2022 Change Cash 200,900 111 200 89,700 Accounts receivable 39,000 20,900 18,100 Allowance for doubtful accounts -700 -600 -100 Inventory 35,000 26,000 9,000 Equity securities - equity method 11,000 10,000 1,000 Long-term investments, held to matur 0 30,000 -30,000 Property, plant & equipment 216,500 150,000 66,500 Accumulated depreciation -75,700 -25,000 -50,700 Patents 18,000 20,000 -2,000 444.000 342.500 101,500 Accounts payable 57,000 35,500 21,500 Accrued liabilities 21,000 27,000 -6,000 Long-term notes payable 90,000 50,000 40,000 Common stock 16,000 15,000 1,000 Additional paid in capital 149,000 130,000 19,000 Additional paid in capital, stock option 5,000 0 5,000 Retained earnings 106,000 85.000 21,000 444,000 342.500 101,500 Sales Revenue. $712,000 Cost of goods sold.. 391,000 Gross margin 321,000 Operating expenses.. 113,500 Pre-tax operating income 207,500 Income under equity method 1,000 Loss on sale of investments -25,000 Pre-tax income 183,500 Tax 52,000 Net income.. $131,500 Additional data: 1. Sold the long-term investments, held to maturity, for $5,000 2. Purchased machinery costing $66,500 issuing a $40,000 note and paying remainder in cash 3. "Issued $20,000 in common stock and additional paid in capital for cash. 4 Company recorded $1,000 in investment revenue under the equity method Prepare cashflow statement on both an indirect and direct basis