Dec. 31, 2023 Dec. 31, 2022Cash78,500 24,000 Accounts Receivable84,200 67,600 Allowance for Doubtful Amounts(6,200) (4,700)Prepaid expenses5,300 5,800 Inventories70,500 58,800 Land150,000 150,000 Buildings690,000 690,000 Accumulated Depreciation - buildings(151,700) (130,000)Equipment535,000 420,000 Accumulated depreciation - delivery equip.(129,000) (227,000)Patents11,000 25,000 Total Assets1,337,600 1,079,500 Accounts payable60,000 68,900 Accrued liabilities9,240 14,600 Mortgage payable97,360 285,000 Bonds payable400,000 0 Premium on Bonds(8,500) 0 Common Stock ($1PV)55,000 50,000 Additional paid-in capital222,500 172,500 Retained earnings537,000 488,500 Less: Treasury Stock(35,000) 0 Total Liabilities and Owners' Equity1,337,600 1,079,500 The income statement for 2023 is as follows: Sales 2,728,500 Cost of sales (2,498,000) Gross profit 230,500 Operating expenses (173,500) Other income(expense) 2,500 Net income 59,500

1. On January 1, 2023 Santos, Inc. issued Common Stock for $11.00/sh.

2. On December 1, 2023 cash dividends were declared and paid.

3. Equipment which cost $150,000 and had a book value of $18,000 was sold for $22,000.

4. Sold $9,000 patents for $7,500 cash.

5. Issued Bonds on December 31, 2023.

6. Purchased new equipment.

7. The Treasury Stock was purchased on October 20th 2023.

a) From the information above, prepare a statement of cash flows (indirect method) for Santos, Inc. for the year ended December 31, 2023. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.