I really need help with a Cash flow project. I don't understand the direct method or the indirect method

2016 Assets cash accounts receivable market securities allawances for change in value of securities inventory prepaid items investments land building amd equipment less accumulated depreciation Total assets liabilities and SH equity accounts payable income taxes payable deferred taxes payable wages payable interest payable notes payable (long term) 12% bonds payable discount on bonds payable preferred stock $100 par common stock, $10 additional paid in capital unrealised increase in value of marketable securities retained earnings Total liabilities and SH equity 2017 $ $ $ $ $ $ $ $ $ $ $ 1,500 3,800 1,900 500 8,500 1,400 7,200 15,400 40,000 (22,000) 58,200 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 4,700 2,000 800 1,600 4,960 9,400 14,000 8,500 500 11,740 58,200 $ $ $ $ $ $ $ $ $ $ $ $ $ $ difference $ 3,918 $ 400 $ 1,600 $ 340 $ 320 $ 100 $ (1,750) $ $ 12,500 $ (1,440) $ 15,988 $ 4,300 $ (400) 2,049 $ 49 1,205 $ 405 2,850 $ 1,250 480 $ 480 - $ (4,960) 12,000 $ 12,000 (348) $ (348) 9,400 $ 17,100 $ 3,100 10,360 $ 1,860 840 $ 340 13,952 $ 2,212 74,188 $ 15,988 5,418 4,200 3,500 840 8,820 1,500 5,450 15,400 52,500 (23,440) 74,188 DIRECT METHOD Cash flows from operating activities Cash receipts from customers Cash paid to suppliers Cash paid to employees cash payment for prepaid assets Interest paid Income taxes paid Net cash used in operating activities $ $ $ $ $ $ $ Cash flows from investing activities Purchase of property, plant, and equipment Proceeds from sale of equipment Net cash used in investing activities $ $ Cash flows from financing activities Proceeds from issuance of common stock Proceeds from issuance of long-term debt Principal payments under capital lease obligation Dividends paid Net cash used in financing activities $ $ $ $ Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period 41,730 (20,570) (17,250) (100) (12) (2,211) 1,587 (12,500) 1,750 $ (10,750) 3,100 14,101 (4,960) 840 $ 13,081 $ $ $ 3,918 1,500 5,418 Formulas Cash Receipts from Customers = + Net Sales + Beginning Accounts Receivable Ending Accounts Receivable Cash Payments to Suppliers = + Purchases + Ending Inventory Beginning Inventory + Beginning Accounts Payable Ending Accounts Payable Cash Payments to Employees = + Beginning Salaries Payable Ending Salaries Payable + Salaries Expense Cash Payments for Purchase of Prepaid Assets = + Ending Prepaid Rent, Prepaid Insurance etc. + Expired Rent, Expired Insurance etc. Beginning Prepaid Rent, Prepaid Insurance etc. Interest Payments = + Beginning Interest Payable Ending Interest Payable + Interest Expense Income Tax Payments = + Beginning Income Tax Payable Ending Income Tax Payable + Income Tax Expense surance etc. d Insurance etc. Net income $3,052 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $ 3,000 increase on accounts receivable $ (400) Increase in prepaid items $ (100) increase in inventory $ (320) Gain on securities $ (1,861) Loss on sale of equipment $ 312 Increase in interest and income taxes payable $ 429 Increase in deferred taxes $ 405 Total adjustments $ 1,465 Net cash provided by operating activities $ 1,587