Burris Corporation's balance sheet accounts as of December 31, 2018 and 2017 and information relating to 2018 activities are presented below. 31 2018 12/31/2017 Information relating to 2018 activities $51.000 follows: Accounts Receivable 145000 130.000 1. Equipment that cost $10,000 and was Merchandise Inventory 75.000 61.000 40% depreciated was sold in 2018. Investments Available for sale 12. Cash dividends were declared and paid 10000 Prepaid Insurance Buildings and Equipe 215.000 193000 during the year. 401000 25,000 3. Land was paid entirely by issuance of $68.000 SO stocks. 4. Investments that cost $35,000 were Allowance for Double Accounts $10.000 $ 8.000 58 000 42.000 sold during the year. 5. Bad debts write-offs were $5,000 Accrued Lates Accounts Payable during the year. Income Tax Payne 12.000 10000 62000 70.000 2 99200 95.000 55 e Notes STRO 5950160 Less Operating presencludes copes and 350000 250 000 100,000 Other revenues and see Income before taxes Income taxe Net income 12000 1127000 45000 56700 Required: (1) Prepare the operating activity section of the statement of cash flows using direct method (slide under my door and push it entirely inside the door at or before 5pm on 12/13/2019) Burris Corporation's balance sheet accounts as of December 31, 2018 and 2017 and information relating to 2018 activities are presented below. Debit Balances 12/31/2018 12/31/2017 Information relating to 2018 activities Cash $80.000 $51.000 follows: Accounts Receivable L 1 45.000 130,000 Merchandise Inventory 75,000 1. Equipment that cost $10,000 and was 61,000 Investments (Available-for-sale) 55,000 85,000 40% depreciated was sold in 2018. Prepaid Insurance 8,000 10,000 2. Cash dividends were declared and paid Buildings and Equipment 215,000 193,000 during the year. Land 40.000 25,000 3. Land was paid entirely by issuance of Totals $618.000 stocks. Credit Balances 4. Investments that cost $35,000 were Allowance for Doubtful Accounts $10,000 $ 8,000 Accu. Depreciation Building & Equip. 58,000 42,000 sold during the year. Accrued Liabilities 800 Bad debts write-offs were $5,000 Accounts Payable 70,000 6 3,000 during the year. Income Taxes Payable 12,000 10,000 Long-Term Notes Payable 62.000 70,000 Common Stock 316,000 265.000 Retained Earnings 89,200 95.000 Totals $618.000 $555.000 Burris' 2018 income statement is as follows Sales $950,000 Less: Cost of goods sold 600,000 Gross profit 350,000 Less: Operating expenses (includes dep. exp. and bad debt exp.) 250,000 Income from operations Other revenues and expenses Gain on sale of investments $17,000 Loss on sale of equipment (5,000) 12,000 Income before taxes 112,000 Income tax expense 45,000 Net income $67.000 Required: (1) Prepare the operating activity section of the statement of cash flows using direct method. (2) Prepare a statement of cash flows using the indirect method