are the 2016 income statement and comparative balance sheet information for Siegfried & Royce (S&G). Siegfried & Royce Income Statement For the Year Ended December 31, 2016 (S in thousands) Sales revenue $12,500 Operating expenses: Cost of goods sold Depreciation Rent Administrative and other $7,300 400 250 Total operating expenses Income before income taxes 2,350 Income tax expense Net income eet information (s in thousands)Dee 31.2016 Dec. 31,2015 Cash Accounts receivable Inventory Prepaid rent Plant& equipment $3,280 1,250 980 150 3,000 $1,300 980 900 100 2,600 Less: Accumulated depreciation Total assets 7460 Liabilities and shareholders' equity: Accounts payable Payables for administrative and other expenses Income taxes payable Note payable (due 12/31/2017) Common stock Retained earnings $ 500 650 450 2,500 1,500 $ 580 700 350 2,000 1,000 Total liabilities and shareholders' equity $460 Required: 1. Prepare S&G's 2016 statement of cash flows, using the indirect method to present cash flows from operating activities. Prepare the cash flows from operating activities section of S&G's 2016 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable. 2