Carl Limited has provided the statement of income for the year ended December 31, 2020, partial comparative statements of financial position for the year ended December 31, 2020 and additional information below: Carl Limited Income Statement For the Year Ended December 31, 2020 Net sales Cost of Goods Sold Gross Profit Operating expenses Income from operations Interest expense Income before income taxes Income taxes Net income $1,165,000 697,500 467,500 127,500 340,000 13,500 326,500 97,950 $ 228,550 Carl Limited. Comparative Statement of Financial Position As at December 31, 2020 2020 Cash $15,000 Accounts receivable - net 42,750 Inventories 16,500 Prepaid insurance 2,500 Equipment 38,000 Accumulated depreciation-equipment (16,250) Accounts payable $5,000 Wages payable 2,000 Deferred Revenue 34,950 Income taxes payable 3,000 Long-term note payable 0 Common shares 15,000 2019 $9,750 39,300 11,750 2,000 33,500 (17.750) $6,750 2,000 58.250 1,000 8,750 15,000 Additional information: Equipment that cost $8,000 was sold for its carrying amount of $3,750. The allowance for doubtful accounts at the beginning of the year was $3,500 and the balance at the end was $4,270. Recoveries were $1,250 and accounts written off amounted to $2,150. Required: i. Prepare the cash flow of operations using the direct method. ii. Prepare the cash from investing section of the cash flow statement