G. Prepare a statement of cash flow on both direct and indirect method
		2019	2018
Assets:
Cash		140,000	60,000
Accounts receivable, net		84,000	70,000
Allowance for doutful accounts		(7,000)	(5,000)
Inventory		55,000	50,000
Prepaid expenses		22,000	20,000
Investments		70,000	20,000
Property, plant & equipment		660,000	500,000
Accumulated depreciation		-100,000	-60,000
Patents		16,000	20,000
Total Assets		940,000	675,000
Liabilities & Equity
Accounts payable		30,000	45,000
Accrued liabilities		25,000	20,000													Cost	Deprec
Taxes payable		10,000	5,000													500,000	-60,000
Long-term Notes Payable		100,000	50,000													(40,000)	10,000
Common stock		100,000	100,000													200,000	(50,000)
Additional paid in capital		230,000	230,000													660,000	-100,000
Paid in capital-stock options		60,000	30,000
Retained earnings		385,000	195,000
Total liabilities and equity		940,000	675,000
Sales		1,200,000
Cost of goods sold		650,000
Gross profit		550,000
Operating expenses		180,000
Pre-tax Operating income		370,000
Gain on sale of investments		10,000
Loss on sale of equipment		-5,000
Pre-tax income		375,000
Income taxes		75,000
Net income		300,000
a. Stock option expense of $30,000 was recognized in 2019
b. Equipment of $200,000 was purchased using $50,000 note payable and cash
c. Equipment with cost of $40,000 and book value of $30,000 was sold for $25,000
d. Investments with a cost of $20,000 were sold for $30,000