3. The financial statements of ABC123 business are presented below. Prepare a statement of cash flows using both the direct and indirect method. Cash Accounts receivable Inventory Equipment Accumulated depreciation Total assets Balance Sheet As at December 31 2017 $39.000 64.000 58.000 325.000 (92.000) $394.000 2016 $24.000 50.000 88.000 250.000 (125.000 $287.000 $40.000 11.000 Accounts payable Income taxes payable Bank loan payable Common shares Retained eamings Total liabilities and shareholders' equity $32.000 10.000 20.000 60.000 272.000 $394.000 50.000 186.000 $287.000 Income Statement For the Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $635.000 320.000 315.000 135.000 180.000 1.000 179.000 43.000 $136.000 Additional information: 1) Operating expenses are composed of: Depreciation $12,000; Salaries $50,000, Loss on Sale of Equipment $9,000, other operating expenses $64,000 2) Other operating expenses are cash expenses. 3) Equipment was purchased during the year for $135,000 cash. 4) Equipment was sold for cash during the year. The original cost of the equipment was $60,000, and the accumulated depreciation was $45,000 5) Dividends were declared and paid during the year