HANNAH BARBERRA COMPANY COMPARATIVE BALANCE SHEET DECEMBER 31, 2023 & 2022 2023 2022 ASSETS: Cash $42,073 $47,075 Accounts Receivable 28,000 30,735 Inventory 132,000 123,550 Prepaid Expenses 5,570 5,800 Equipment 110,500 100,000 Accumulated Depreciation -55,375 -47,500 TOTAL ASSETS $262,768 $259,660 LIABILITIES & STOCKHOLDERS' EQUITY: Accounts Payable $17,588 $47,000 Short-term Notes Payable 8,000 6,000 Long-term Notes Payable 51,250 38,750 Common Stock, $5 Par 105,500 100,000 Paid-In-Capital Excess Par 11,000 0 Retained Earnings 73,930 67,910 TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $262,768 $259,660 HANNAH BARBERRA COMPANY INCOME STATEMENT YEAR ENDED 12/31/23 Sales $400,000 Cost of Goods Sold -250,000 Gross Profit $150,000 OPERATING EXPENSES: Depreciation Expense 18,100 Other Expenses 89,000 TOTAL OPERATIING EXPENSES -107,100 OPERATING INCOME $42,900 Other Gains (Losses) Loss on Sale of Equipment -2,400 INCOME BEFORE TAXES $40,500 Income Tax Expense -9,525 NET INCOME $30,975 ADDITIONAL INFORMATION ON YEAR 2023 TRANSACTIONS: (1) Sold equipment for $13,425. (2) Purchased equipment costing $36,000 paying $10,000 cash and signing a long-term Note Payable for $26,000. (3) Paid $15,300 to reduce the long-term Notes Payable (4) Borrowed $2,000 by signing a short-term Notes Payable (5) Declared and Paid Cash Dividends of $28,205 (6) Issued 1,100 shares of Common Stock for $15 per share.

REQUIRED: Show all work especially on (2) to receive any credit for the Direct Method (1) Prepare a Complete Statement of Cash Flows using the Indirect Method. (2) Prepare ONLY the Operating Activities of the Statement of Cash Flows using the Direct Method.

HANNAH BARBERRA COMPANY ADDITIONAL INFORMATIUN UN YEAK ZUZS TRANSACTIONS: (1) Sold equipment for $13,425. (2) Purchased equipment costing $36,000 paying $10,000 cash and signing a long-term Note Payable for $26,000. (3) Paid $15,300 to reduce the long-term Notes Payable (4) Borrowed $2,000 by signing a short-term Notes Payable (5) Declared and Paid Cash Dividends of $28,205 (6) Issued 1,100 shares of Common Stock for $15 per share. REQUIRED: Show all work especially on (2) to receive any credit for the Direct Method (1) Prepare a Complete Statement of Cash Flows using the Indirect Method. (2) Prepare ONLY the Operating Activities of the Statement of Cash Flows using the Direct Method