data. Gariepy Wholesale Ltd.'s comparative balance sheet at December 31, 2020, and its 2020 income statement are as follows: December 31, 2020 and 2019 Assets Current assets 2020 Cash Accounts receivable GARIEPY WHOLESALE LTD. Balance Sheet 2019 $ 188,000 $ 43,000 370,000 241,500 Interest receivable Inventory 14,500 18,000 343,000 301,000 Prepaid expenses 18,500 14,000 Long-term investment 50,500 26,000 Plant and equipment, net 422,500 368,000 Land 212,000 480,000 Total assets $1,619,000 $1,491,500 Liabilities Current liabilities Note payable, short-term $ 67,000 $ 90,500 Accounts payable 234,500 201,500 Income tax payable 69,000 72,500 Accrued liabilities Interest payable Salaries payable 41,000 48,500 18,500 14,500 4,500 13,000 Long-term note payable 237,000 470,500 Shareholders' Equity Common shares 319,500 256,000 Retained earnings 628,000 324,500 Total liabilities and shareholders' equity $1,619,000 $1,491,500 Preparing section o statemen GARIEPY WHOLESALE LTD, Income Statement For the Year Ended December 31, 2020 $1.327,000 Net sales Cost of goods sold 402,000 Gross margin 925,000 Operating expenses $194,000 Salaries expense 27,000 Amortization expense 210,000 431,000 Other expenses 494,000 Operating income Other revenues and expenses Revenues and gains Interest revenue 53,000 Expenses and losses Interest expense (30,500) Loss on sale of land (33,500) (64,000) Income before income taxes 483,000 Income tax expense 49,500 Net income $433,500 Other information for the year ended December 31, 2020 which may be useful includes: a. Acquired equipment by issuing a long-term note payable, $76,500, and paying $5,000 cash. b. Purchased a long-term investment for cash. c. Received cash for issuance of common shares, $40,000. d. Only cash dividends were issued during the year. e. Paid short-term note payable by issuing common shares. Required 1. Prepare Gariepy Wholesale Ltd.'s operating section of the cash flow statement for the year ended December 31, 2020, using the indirect method. All current accounts except short-term note payable, result from operating transactions. 2. Describe how the direct method would differ from the partial statement you ated in Requirement 1. P13-J