Hello, I need the help with thisproblem please! I am stuck on both the indirect and direct method for statement of cash flows. Thanks!

Chapter 14 1 The following financial statement data is available for the Winston Salem Company for Dec. 31, 2016. (30 pts) Comparative Balance Sheet Data 2016 Cash $ 39,835 Accounts Receivable 17,500 Dividends Receivable 1,000 Inventory 42,000 Prepaid rent 3,000 Prepaid insurance 2,100 Office supplies 1,000 Long-term investments 20,000 Land 125,000 Building 350,000 Accumulated depreciation, Building (105,000) Equipment 525,000 Accumulated depreciation, Equipment (130,000) Patent 45,000 Total assets $ 936,435 2015 4,000 12,950 0 35,000 12,000 900 750 30,000 175,000 350,000 (87,500) 400,000 (112,000) 50,000 $ 871,100 $ Accounts payable $ 26,000 $ 30,000 Income taxes payable 5,000 4,000 Wages payable 5,000 3,000 Short-term notes payable 10,000 10,000 Dividends payable 1,500 0 Unearned Income 500 2,000 Product Warranty Payable 5,303 10,853 Long-term notes payable 60,000 70,000 Bonds payable 415,000 415,000 Common stock ($10 par) 290,000 220,000 Paid-in capital in excess of par 46,410 17,500 Retained earnings 106,722 88,747 Treasury Stock (35,000) -Total liabilities and equity $ 936,435 $ 871,100 Income Statement Sales revenue Cost of goods sold Gross margin Operating expenses Income from operations Other revenues/expense Gain on sale of land Gain on sale of long-term investment Dividend revenue Interest expense Income before taxes Income tax expense Net income $1,160,000 ( 748,000) 412,000 ( 276,400) 135,600 8,000 4,000 2,400 (51,750) ( ( 37,350) 98,250 39,400) 58,850 Instructions: Prepare a statement of cash flows in proper form for 2016 using the Indirect method. Then, redo the Operating Section only using the Direct method. In this exercise, follow these steps: o Create a Comparative Balance Sheet where you compute the dollar change in every account on the Balance Sheet. o Label each item on the Balance Sheet as being Operating, Investing, or Financing. This is extremely important because then you know where each item belongs on the Cash Flow Statement. Don't bother labeling Cash or Retained Earnings because these are affected by all three activities. o For the Operating Section (Indirect Method): Start with Net Income Add back Depreciation and/or Amortization Expense Adjust out anything included in Net Income that belongs in the Investing or Financing section Add or subtract accordingly all items you labeled as an Operating activity from the Balance Sheet o For the Investing and Financing Sections: Use T-Accounts for each account to help you solve for the correct amounts: start with beginning balance on the correct side; include what you know including ending balance; figure out what else needed to happen in order to get the ending balance. Use journal entries (if appropriate) to help you visualize a transaction and its affect (or not) on cash Be sure to account for all changes in the balance sheet and to reconcile those to the appropriate section of the cash flow statement. o For the Operating Section (Direct Method) You are starting with Sales, adjusting it for cash received from customers, then going directly down the Income Statement and doing the same with each item on the Income Statement (see Chapter 14 Appendix). You will end up with the same answer for Operating Cash Flow. Be sure to consider all items labeled Operating in your Comparative Balance Sheet. Other Important Information There are no non-cash transactions affecting investing activities. The only sales of assets are the ones reflected in the income statement. On April 1, 2016, the company paid $14 per share for Treasury Shares. To remember how this affected financial position, review this in Chapter 11. On Sept. 1, 2016, the company declared and issued a 5% stock dividend on outstanding shares when the market price of the stock was $17. To remember how this affected financial position, review this in Chapter 11. All other transactions affecting Contributed Capital and Retained Earnings occurred after Sept. 1, 2016. There were no prior period adjustments