ABC Corportion Balance sheet Dec31, 2020 Cash AR Inventory Investment FVNI prepaid ins supplies 2020 82,000 348,000 398,000 818,000 16,000 13,000 640,000 1,310,000 -400,000 632,000 -160,000 60,000 3,757,000 2019 8,000 271,000 350,000 800,000 35,000 17,000 500,000 1,280,000 -360,000 640,000 -135,000 65,000 3,471,000 land building accomi dep buil Equipment Aoc dep en Patent Total AP Income tax Accrued Li Dividend pay Notes pay Bonds pay 165,000 26,000 57,000 20,000 420,000 999,000 486,000 1,146,000 438,000 3,757,000 150,000 35,000 41,000 50,000 460,000 995,000 380,000 1,066,000 294,000 3,471,000 Preferred sh Common sh retained ea total 2020 Income statement sales Investment income 999,000 90,000 Expenses Interest expense Losses Total expense Net Income 788,000 95,000 11,000 894,000 195,000 Financial statements and notes for Knutsford Corporation are below: 1. During 2020, Knutsford Corporation exchanged preferred shares for land valued at $100,000. It also purchased a second tract of land for cash. During the year, convertible preferred shares with a book value of $18,000 were exchanged for common shares. 2.One building was purchased during the year. 3. Equipment with a cost of $46,000 and accumulated depreciation of $32,000 was sold. Knutsford also purchased equipment. 4.Depreciation and amortization are included in operating expenses. 5.Dividends were paid. 6.Investment income includes dividend interest, and gains. This includes an $18,000 mrealized gain. Instructions A.Prepare a statement of cash flows for 2020 using the indirect method. B.Prepare the operating activities section of the statement of cash flows for 2020 using the direct method