Hartman, Inc. has prepared the following comparative balance sheets for 2019 and 2018:

2019 2018

Cash $ 297,000 $ 153,000

Receivables 159,000 117,000

Inventory 150,000 180,000

Prepaid expenses 18,000 27,000

Plant assets 1,260,000 1,050,000

Accumulated depreciation (450,000) (375,000)

Patent 153,000 174,000

Total $1,587,000 $1,326,000

Accounts payable $ 153,000 $ 168,000

Accrued liabilities 60,000 42,000

Mortgage payable 450,000

Preferred stock 525,000

Additional paid-in capitalpreferred 120,000

Common stock 600,000 600,000

Retained earnings 129,000 66,000

Total $1,587,000 $1,326,000

1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.

The income statement for 2019 is as follows:

Sales $1,980,000

Cost of sales 1,089,000

Gross profit 891,000

Operating expenses 690,000

Net income $ 201,000

Instructions

(a) From the information above, prepare a statement of cash flows using the direct method of reporting operating activities for Hartman, Inc. for the year ended December 31, 2019.

(b) From the information above, prepare a schedule of cash provided by operating activities using the indirect method