P12-66A. (Learning Objectives 2,3,4: Prepare the statement of cash flow indirect and direct methods The comparative balance sheets of Victoria Vicente Design Studio, Inc., at June 30 2014 and 2013, and transaction data for fiscal 2014, are as follows: Victoria Vicente Design Studio Comparative Balance Sheets 2014 2013 (Decreasel 8 Prepaid expenses 9 Long-term investment 10 Equipment, net $ 30.800 59.000 78.400 1.500 20.400 74 700 49.700 $314 500 $ 12,200 22,100 40.400 2,300 2.700 73.800 92.800 5 246 300 $ 18,600 36,900 38,000 1800 17,700 900 (43, 100) $ 68,200 $ $ $ 13 Current liabilities: 14 Notes payable, short-term 15 Accounts payable 16 Income tax payable 13.800 46,400 13.400 66.500 2.500 18,700 40.400 15.100 3.100 2300 2.900 94,000 51,200 4,900) 6,000 11.2001 63,400 1.200 12.100 46.900 18.100 18 Interest payable 19 Salary payable 20 Long-term note payable 21 Common stock 22 Retained earnings 47.100 53.700 $ 314 500 $ 246,300 S 68.200 Transaction data for the year ended June 30, 2014, follows: . Net income, $72,800 b. Depreciation expense on equipment, $13,300 c. Purchased long-term investment with cash, $17,700 d. Sold land for $36,400, including $6,700 loss e. Acquired equipment by issuing long-term note payable, $14,200 f. Paid long-term note payable, $61,100 g. Received cash for issuance of common stock, $13,200 h. Paid cash dividends, $37,700 i. Paid short-term note payable by issuing common stock, 84,900 Requirements 1. Prepare the statement of cash flows of Victoria Vicente Design Studio, Inc., for the year ended June 30, 2014, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current accounts except Notes Payable, short-term result from operating transactions. 2. Prepare a supplementary schedule showing cash flows from operations by the direct meth- od. The accounting records provide the following collections from customers, $230,800, interest received, 51,400, payments to suppliers, 398,400, payments to employees, $30,700, payments for income tax, 513,200, and payment of Interest, 54,400. De tar Peyments the focal como