Comparative balance sheet accounts of Baruch Company, for December 31, 2016 and 2017, are presented below Balance Sheets 2017 $38,750 $50,000 Cash 65,000 Accounts Receivable 72,500 Allowance for Bad Debts (4,000 m(4,750) Merchandise Inventory 29,000 35.000 Long-Term Investments 42,500 27,250 Equipment 23,750 35.000 Accum, Depreciation Equipment w7,250) (10,625) Buildings 61,250 72,500 (18,500) Accum, Depreciation Buildings 4,000) Land 2,500 12,500 Total Assets $247,500 S270,875 Accounts Payable 29,750 35.000 Accrued Payables 5,125 5.875 31,000 Long-Term Notes Payable 35.000 130,000 Common Stock 55,000 Retained Earnings 44.000 S270,875 Total Liabilities and SE $247,500 Additional Data (ignore taxes): l. Net income for the year is $69,000. 2. Cash dividends declared during the year $47,625. 3. A stock dividend was declared during the year. This resulted in retained earnings of S25,000 being capitalized. 4. Investments that cost S17,250 were sold for $26,000. 5. Equipment that cost S5,000, and was one-fourth depreciated, was sold for S2,000. Baruch's 2017 income statement is as follows (ignore taxes $630,000 Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses 169.500 ncome from operations 62,000 Other: $8,750 Gain on sale of investments Loss on sale of equipment (1,750) 7.000 Net Income 69,000 (Includes S9,125 of depreciation and si,000 bad debts expense) Instructions 1) Compute net cash provided by operating activities using the direct method. 2) Prepare a statement of cash flows using the indirect method