Indirect and direct statement of cashflow

prepare a statement of cash flow using the indirect method and another one prepare it using the direct method DO BOTH THING!!

Financial statements for Discovery Company follow: DISCOVERY COMPANY Statement of Financial Position As of 31 December Assets Current assets: 20X4 20X3 Cash Accounts receivable Inventory 1,030,000 840,000 $ 37,000 32,000 980,000 761,600 1,773,600 300,000 3,520,000 2,418,000 (1,781,600) (1,756,000) 194,000 1,907,000 700,000 Total current assets Land Plant and equipment Less: Accumulated depreciation Patents 186,000 Total assets $4,531,400 $ 2,929,600 Liabilities and shareholders' equity Liabilities Current liabilities: Accounts payable Salaries and wages payabl Income tax payable $ 580,000 S632,400 84,200 198,600 91,400 213,800 Total current liabilities 915,200 2,218,000 1,190,000 885,200 Long-term debt Total liabilities 3,103,200 2,105,200 Shareholders' equity: Common shares, no-par Retained earnings 366,000 360,000 464,400 1,062,200 1,428,200 Total liabilities and shareholders'equity $4,531,400 Total shareholders' equity 824,400 2,929,600 Statement of Comprehersive Income For the year ended 31 December 20X4 Sales revenue Less expenses: Cost of goods sold Seling and administrative expenses Depreciation and amortization Rent expense Miscellaneous expenses $4,082.000 1,090,000 370,000 284.000 5,856,000 Other revenuas and expenses: 69 200 Interest cxpense Gain on sale of equipment Loss on debl relirement 22.000 9,200 Earmings before income tax Income tax expense 1.464,800 623,600 Not earnings and comprohensive income S 841,200 Additional information: a. The company sold equipment that had an original cost of $584,000 and a net book value of $247,600. Other equipment was purchased for cash. Patent amortization was $3,000. b. Long-term debt with a face value of $800,000 was repaid during the year and other long-term debt was issued at a lower interest rate. C. The company issued shares for land during the period. Other common shares were retired (bought back and cancelled) at book value. d. Assume unexplained changes in accounts stem tfrom logical transactions