I just need the direct method

6. Prepare the Statement of Cash Flows for Rich Corp using the Direct method. 7 8 Prepare the statement of Operating Activities section of the Statement of Cash Flows for Rich Corp using the Indirect method. 9 10 Rich Corp 11 Income Statement 12 FYE 12/31/20 13 14 Revenues 3,560,000 15 Cost of Goods Sold (1860,000) 16 Operating Expenses (884,000) 17 interest Expense (48,000) 18 Loss on sale of equipment 18000) 128000001 19 Income before income taxes 760,000 20 Income tax expense 1260000 21 Net Income 5.000,00 22 23. Additional information relating to 2020 activities: 24 Cash dividends of $220,000 were declared and paid 25 Equipment costing $164,000 and having a carrying value of $144,000, was sold for $136,000 cash 26 Equipment with a cost of $661,000 was purchased for cash Operating expenses include depreciation expense of $132,000 and amortization of prepaid expenses of $8,000 28 Land was sold at its book value for cash 29 Interest expense of $18,000 was paid in cash 30 Common stock was issued for cash 31 Inventory was purchased on credit 32 Assume operating expenses are paid in cash DIRECT METHOD Debits Credits 12/31/19 148,000 104,000 0 24,000 280,000 800,000 272 000 1,628,000 12/31/20 216,000 272,000 216,000 16,000 180,000 800,000 772.000 2,472,000 Cash Accounts Receivable 2 Inventory 2. Prepaid Insurance 4 land 5 Buildings 6 Equipment 7 8 9 Accumulated Depreciation, Buildings 0 Accumulated Depreciation Equipment e Accounts Payable 22 Bonds Payable 23 Common Stock ($1 par) 24 Retained Earnings 25 26 B7 Income Statement Section 28 Revenues 29 Cost of Goods Sold 30 Operating Expenses 31 Interest Expense 32 Loss on sale of equipment 33 Income tax expense 34 Net Income 44,000 40,000 160,000 600,000 240.000 544,000 1,628,000 84,000 112,000 132,000 440,000 880,000 825000 2.472.000 36 37 Cash Flow Section 138 39 140 141