INDIRECT METHOD Debits Credits Cash Accounts Receivable Inventory Prepaid Insurance Land Buildings Equipment 12/31/19 111,000 78,000 0 18,000 210,000 600,000 204 000 1,221,000 12/31/20 162,000 204,000 162,000 12,000 135,000 600,000 579,000 1,854,000 Accumulated Depreciation, Accumulated Depreciation Accounts Payable Bonds Payable Common Stock ($1 par) Retained Earnings 33,000 30,000 120,000 450,000 180,000 408,000 1,221,000 63,000 84,000 99,000 330,00 660,000 618,000 1,854,000 Cash Flow Section INDIRECT method