CASH FLOW USING DIRECT METHOD PLEASE HELP FOR THE OPERATING SECTION

Financial statements for Winter Company follow Winter Co Statement of Financial Position As of 31 December 20x4 20x3 Assets Current assets Cash $ 37,000 $ 32.000 Accounts receivable 1.030.000 980,000 SOBO Inventory 840,000 761,600 DO Total current assets 1.907.000 1,773.600 Land 700.000 300,000 Plant and equipment 3,520,000 2.418.000 Less: Accumulated depreciation (1.781,600) (1.756,000) Patents 186,000 194,000 Total assets $ 4,531,400 $ 2,929,600 Liabilities and shareholders' equity Liabilities: Current liabilities: Accounts payable $ 580,000 $ 632,400 (526) Salaries and wages payable 91,400 84,200 7200 Income tax payable 213,800 198,600 1510 Total current liabilities 885,200 915,200 Long-term debt 2.218.000 1.190.000 Total liabilities 3.103.200 2,105,200 Shareholders' equity: Common shares, no-par 366,000 360,000 Retained earnings 1,062,200 464,400 Total shareholders' equity 1,428,200 824,400 Total liabilities and shareholders' equity $ 4,531,400 $ 2,929.600 DISCOVERY COMPANY Statement of Comprehensive Income For the year ended 31 December 20X4 Sales revenue 7,400.000 Less expenses: Cost of goods sold $4,082,000 Selling and administrative expenses 1,090,000 Depreciation and amortization 370,000 Rent expense 30,000 Miscellaneous expenses 284.000 Total expenses 5,856,000 Other revenues and expenses: Interest expense 69,200 Gain on sale of equipment (12,000) Loss on debt retirement 22,000 79,200 Earnings before income tax 1,464,800 Income tax expense 623,600 Net earnings and comprehensive income $ 841,200 Additional information: a. The company sold equipment that had an original cost of $584,000 and a netbook values of $247,600. Other equipment was purchased for cash. Patent amortization was $8.50 b. Long-term debt with a face value of $800,000 was repaid during the year and other long-term debt was issued at a lower interest rate. The company issued shares for land during the period. Other common shares were retired (bought back and cancelled) at book value. d. Assume unexplained changes in accounts stem from logical transactions. c. 202) Required: 1. Prepare the SCF. In: Check figures: CFO - 1,062,800 CFI -(1,426,400) CFF - 368,600