Additional information: 1. New equipment and machinery were purchased for cash during the year. 2. Investments were sold at cost. 3. Equipment costing $22,000 was sold for $14,500, resulting in a gain of $7,500. 4. A cash dividend was declared and paid during the year. 5. Shares are issued at cash. Debentures are reimbursed at cash. 6. Accounts payable pertain to inventory creditors. Required (a) Prepare a statement of cash flows using the direct method. (b) Prepare a reconciliation of profit to cash provided by operations