Cashflow Example 2 The following financial financial statements are available for Peacock, Inc. on December 31, 2012. Peacock, Inc. Comparative Balance Sheets As of December 31, 2011 and 2012 Comparative Balance Sheets Assets: Cash AR Inventory Prepaid expense Total current assets 12/31/2011 98,000 240,000 320,000 12/31/2012 158,000 215,000 358,000 12,500 743,500 Change 60,000 (25,000) 38,000 (4,300) 16,800 674,800 Land Property, plant and equipment Accumulated Depn Total Assets 310,000 450,000 (180,000) 1,254,800 250,000 830,000 (200,000) 1,623,500 Liabilities and Shareholders Equity: Accounts payable Wages payable Total current liabilities 98,000 16,700 114,700 90,000 18,900 108,900 (8,000) 2,200 Long-term notes payable Common stock Retained earnings Total Liabilities and Shareholders Equity 445,000 425,000 270,100 1,254,800 315,000 625,000 574,600 1,623,500 Peacock Inc. Income Statement For the Year Ended December 31, 2012 $1,880,000 Sales Gain on sale of assets 12,000 1,892,000 Less: Cost of goods sold Wages expense Depreciation expense Other expense Interest expense 1,100,000 128,000 64,000 $127,500 42,000 1,461,500 430,500 Net income Other available information: New plant assets costing $450,000 were purchased during the year. Land was sold during the year at the amount of its original cost, The company did not issue notes payable during the year. There were repayments of principal during the year. Dividends were declared and paid during the year. There were no repurchases of company stock during the year. Required: c) Prepare the Statement of Cash Flows for Peacock, Inc. for the year ended December 31, 2012 using the indirect method to calculate cash flows from operations. d) Prepare the Operating Section of the Statement of Cash Flows for Peacock, Inc. for the year ended December 31, 2012 using the direct method to calculate cash flows from operations