Directions: After reading the companys background information, complete the corresponding tasks below.

Background Information:

The following information relates to Pull Company:

Net income = $878,000

Cash received from customers = $3,000,000

Cash paid for inventory = $1,500,000

Cash paid for utilities = $50,000

Cash received from sale of building =$50,000

Cash paid for rent = $100,000

Cash received from sale of common stock = $1,000,000

Cash paid for supplies = $20,000

Cash paid for purchase of equipment = $50,000

Cash paid for salaries = $400,000

Cash paid for reacquiring common stock = $100,000

Cash paid for purchase of investments = $10,000

Cash received from sale of investments = $20,000

Cash received from issuance of bonds = $300,000

Cash paid on principal of debt = $20,000

Depreciation expense = $7,000

The balance sheet is as follows:

Tasks:

Prepare a cash flow statement using the direct method.

Prepare a cash flow statement using the indirect method