orporatio Income Statement For the Year Ended December 31, 2016 $ Sales Cost of Goods Sold Gross Margin Operating Expenses (including Depreciation Expense of $46,800) Income from Operations Other Income (Expense) Gain on Disposal of Furniture and Fixtures 7,000 Interest Expense (23,200) Income Before Income Taxes Income Taxes Net Income $ 1,609,000 1,127,800 481,200 449,400 31,800 (16.200) 15,600 (4.600) 11.000 The following is additional information about 2006: (a) furniture and fixtures that cost $35,600 with accumulated depreciation of $28,800 were sold at a gain of $7,000; (b) furniture and fixtures were purchased in the amount of $39,600; (c) a $20,000 note payable was paid and $40,000 was borrowed on a new note: (d) bonds payable in the amount of $100,000 were converted into 4,000 shares of common stock; and (e) $6,000 in cash dividends were declared and paid. 1. Using the Indirect method, prepare a Statement of Cash Flows (6 marks) 2. Prepare Net Cash Flows of Operating Activities under the Direct method (2 marks) orporatio Income Statement For the Year Ended December 31, 2016 $ Sales Cost of Goods Sold Gross Margin Operating Expenses (including Depreciation Expense of $46,800) Income from Operations Other Income (Expense) Gain on Disposal of Furniture and Fixtures 7,000 Interest Expense (23,200) Income Before Income Taxes Income Taxes Net Income $ 1,609,000 1,127,800 481,200 449,400 31,800 (16.200) 15,600 (4.600) 11.000 The following is additional information about 2006: (a) furniture and fixtures that cost $35,600 with accumulated depreciation of $28,800 were sold at a gain of $7,000; (b) furniture and fixtures were purchased in the amount of $39,600; (c) a $20,000 note payable was paid and $40,000 was borrowed on a new note: (d) bonds payable in the amount of $100,000 were converted into 4,000 shares of common stock; and (e) $6,000 in cash dividends were declared and paid. 1. Using the Indirect method, prepare a Statement of Cash Flows (6 marks) 2. Prepare Net Cash Flows of Operating Activities under the Direct method (2 marks)