Financial statements and notes for Knutsford Corporation are below:

1. During 2020, Knutsford Corporation exchanged preferred shares for land valued at $100,000. It also purchased a second tract of land for cash. During the year, convertible preferred shares with a book value of $18,000 were exchanged for common shares.
2. One building was purchased during the year.
3. Equipment with a cost of $46,000 and accumulated depreciation of $32,000 was sold. Knutsford also purchased equipment.
4. Depreciation and amortization are included in operating expenses.
5. Dividends were paid.
6. Investment income includes dividend, interest, and gains. This includes an $18,000 unrealized gain.
7. The increase in bonds payable represents bond discount amortization for the year.

Instructions

1. give all statement of cash flows for 2020 using the indirect method.
2. Prepare the operating activities section of the statement of cash flows for 2020 using the direct method.

For Financial statements please refer links:

https://www.coursehero.com/qa/attachment/13449658/

https://www.coursehero.com/qa/attachment/13449665/

https://www.coursehero.com/qa/attachment/13449665/