P23.6B (L0 2,3,4) (SCF-Indirect Method, and Net Cash Flow from Operating Activities, Direct Method) Comparative balance sheet accounts of Easton Inc. are presented below and on the next page. 6 Chapter 23 Statement of Cash Flows Additional data (ignoring taxes): 1. Net income for the year was $71,400. 2. Cash dividends declared and paid during the year were $10,000. 3. A 10% stock dividend was declared during the year. $37,500 of retained earnings was capitalized. 4. Investments that cost $24,000 were sold during the year for $29,500. 5. Equipment that cost $5,400, on which $3,600 of depreciation had accumulated, was sold for $2,200. Additional data (ignoring taxes): 1. Net income for the year was $71,400. 2. Cash dividends declared and paid during the year were $10,000. 3. A 10% stock dividend was declared during the year. $37,500 of retained earnings was capitalized. 4. Investments that cost $24,000 were sold during the year for $29,500. 5. Equipment that cost $5,400, on which $3,600 of depreciation had accumulated, was sold for $2,200. Easton's 2020 income statement follows (ignoring taxes): Instructions (a) Compute net cash flow from operating activities using the direct method. (b) Prepare a statement of cash flows using the indirect method