C. Complete a set of cash flow T-accounts using the direct method of computing cash flows from operations

CHAPTER 13 CHECKPOINT PROBLEM #2 O'Hura Company had the following information available at the end of 2018: Income Statement For Year Ended December 31, 2018 Sales Cost of Goods Sold Gross Profit Operating Expenses 110,460 41,950 68,510 Depreciation Salaries Insurance Rent Utilities 9,200 22,810 950 12,400 5,950 Total Operating Expenses Operating Income Other Expenses/Losses: 51,310 17,200 Gain on Sale of Plant Assets Loss on Sale of Investments Interest Expense 1,600 350 720 Income Before Taxes Income Tax Expense Net Income 530 17,730 3,930 13,800 The following additionai information is available: a. Cash dividends of $5,500 were declared and paid. b. Investments costing $5,200 were sold for $4,850 cash. c. Plant assets costing $53,700 were purchased by paying $33,700 in cash and signing a $20,000 note payable for the balance. d. Common stock with a par value of $5,000 was issued for S6,200 cash. e. Plant assets costing $18,200 with accumulated depreciation of $14,100 were sold for $5,700 cash. f. Bonds payable with a face value of $8,000 were issued for $8,000 cash. g. $7,200 of the long-term notes payable were paid. REQUIRED: A. Complete a set of cash flow T-accounts using the indirect method of computing cash flows from operati B. Prepare a formal cash flow statement using the indirect method. C. Complete a set of cash flow T-accounts using the direct method of computing cash flows from operation