3. Back Cove Company has the following comparative balance sheets and income statement: 2017 2016 Cash Receivables Inventories Other Assets (net) $10,000 11,000 22,000 20,000 $63,000 $15,000 10,000 18,000 573,000 $10,000 $20,000 Retained Earnings 33,000 $63,000 $20,000 16,000 37.000 573,000 Accounts Payable Capital Stock $110,000 72,000 2,000 Cost of Sales Gain on sale of Assets Expenses Income 5 24,000 A. Depreciation expense was $5,000. A machine with a cost of $19,000 and book value of $13,000 was sold which produced the gain on sale of assets. Other assets were purchased for cash during the year, a dividend paid, and stock was issued for $4,000. Using the Indirect Method, prepare a cash flow statement. B. Referto Back Cove in Problem 3. Assuming all operating expenses are paid for in cash and all inventory purchases are made on account, prepare cash from operations using the Direct Method