J$.$ Prepare a statement of cash flow on both direct and indirect method

Sharpe Company

Balance Sheet

$20202019$ Change

Cash $80,00067,00013,000$

Accounts receivable $165,000130,00035,000$

Allowance for doubtful accounts $(10,000)(8,000)(2,000)$

Inventory $80,00065,00015,000$

Equity securities $45,00020,00025,000$

Investments $-$ trading $30,00010,00020,000$

Investments $($avail for sale$)85,000(85,000)$

Property, plant & equipment $255,000218,00037,000$

Accumulated depreciation $(58,000)(42,000)(16,000)$

Total Assets $ $587,000$ $ $545,000$

Accounts payable $76,00070,0006,000$

Income tax payable $22,00020,0002,000$

Notes payable, long$-$term $62,00070,000(8,000)$

Common stock $310,000260,00050,000$

Paid in capital $-$ stock options $15,00015,000$

Retained earnings $152,000125,00027,000$

Accumulated OCI $20,000-20,000$

Total liabilities and equity $ $657,000$ $ $545,000$

Sharpe Company

Income Statement

Sales revenue $ $950,000$

Cost of goods sold $600,000$

Gross profit $350,000$

Selling & administrative expenses $265,000$

Income from operations $85,000$

Unrealized gain on equity securities $25,000$

Unrealized gain on trading securities $20,000$

Gain on sale of investments $15,000$

Loss on sale of equipment $(3,000)$

Pre$-$tax income $142,000$

Income taxes $45,000$

Net income $97,000$

Other information:

a$.$ Equipment that cost $$40,000$ and was $50\%$ depreciated was sold during current year

b$.$ Cash dividends were declared and paid

c$.$ Common stock was exchanged for $$25,000$ in PP&E

d$.$ Available for sale Investments that cost $$45,000$ were sold during the year

e$.$ Available for sale investments of $$10,000$ were purchased during the year

f$.$ Stock option expense of $$15,000$ was recorded during $2020.$