Condensed financial data follow for Galenti Inc. Galenti is a private company reporting under ASPE. Prepare cash flow statement direct method and indirect method. (LO 2, 3) AF GALENTI INC Balance Sheet December 31 Assets Cash Short-term investments Accounts receivable 2017 2016 $102,.700 107,00012,5p0 37,000 102,650 94,500 80,800 111,900 10,000 290,000 (49,500) $640,400 L5% Prepaid expenses Property, plant, and equipment Accumulated depreciation 16,000-Go 205,000 55,003 (40,000) ,50 $474,900 Total assets Liabilities and Shareholders Equity Accounts payable Accrued expenses payable Notes payable Common shares Retained earnings $ 54,280 + 9410 $62,700 12,100 140,000 250,000 175,600 $640,400 18,830 6720 80,000 bep 200,000 Sopo 121,7905,S10 $474,900 its Total liabilities and shareholders' equity GALENTI INC. Income Statement Year Ended December 31, 20127 Revenues Sales Gain on sale of equipment $307,500 8,750 316,250 Cost of goods sold Operating expenses Depreciation expense Interest expense Loss on sale of short-term investments $99,460 24,670 58,700 2,940 7,500 193,270 122,980 32,670 Profit before income tax Income tax expense $ 90,310 Profit Additional information: I. Short-term investments (reported at cost) were sold for $15,000, resulting in a loss of $7,500. Investments were also purchased during the year 2New equipment costing $141,000 was purchased for $71,000 cash and a $70,000 note payable. 3. Equipment with an original cost of $56,000 was sold, resulting in a gain of $8,750. . Notes payable that matured during the year were paid in cash. SAccounts Payable is used for merchandise purchases. 6 Prepaid expenses and accrued expenses payable relate to operating expenses. 2. Accounts receivable relate to merchandise sales