indirect and direct method

The 2020 comparative balance sheets and income statement for Lance Corp are show below. Using these financial statements and the additional information given prepare the statement of cash flows using [a] the direct method and [b] the indirect method. Lance Corporation Balance Sheets as of 31 December 2022 DIFF 2021 18,975 39,100 (69,000) 4,600 Assets Cash Accounts Receivable, net Inventory Prepaid Expenses Total Current Assets Machinery & Equipment Accumulated Depreciation Land TOTAL ASSETS $64,975 172,500 506,000 20,700 764,175 1,150,000 (345,000) 230,000 $1,799,175 $46,000 133,400 575,000 16,100 770,500 924,600 (287,500) 230,000 $1,637,600 225,400 (57 500) Liabilities Accounts Payable Salaries & Wages Payable Interest Payable Bonds Payable Total Liabilities $282,900 108,675 62,100 161,000 614,675 18,400 (56,925) 4,600 (69,000) 264,500 165,600 57,500 230,000 717,600 3 Equity 4 Common Stock (no par) Retained Earnings 6 Total Equity 7 TOTAL LIABILITIES & EQUITY 207.000 57 500 851,000 333,500 1,184,500 $1,799,175 644,000 276,000 920,000 $1.637,600 Lance Corporation Income Statement FYE 31 December 2022 $2,887,650 1,661,175 1,226,475 - Sales Revenue Cost of Goods Sold 4 Gross Profit 5 Operating Expenses: Salaries & Wages Expense Interest Expense Depreciation Expense Other Expenses 20 Operating Income 41 Income Tax Expense 42 Net Income $579,830 172,500 57,500 18,745 828,575 397,900 (98,900) $299,000 45 Additional Information: 46 1. All sales during the year were made on account. 2. All merchandise purchase during the year was purchased on account. 3. Machinery was purchased by making a down-payment in the amount of $ (amount is in cell to the right) and the $64,400 remainder was paid by issuing shares of common stock. 43 4. The "other expenses" are related to prepaid items. downpayment