Please perform direct method for statement of cash flows for only the operating section.

INSTRUCTIONS PART 1: Using the information provided below, prepare a complete statement of cash Bows: reports its statement of cash flows reports its operating activities using the indirect method. Disclose any noncash (Adapted from PR16-1B and PR16-3B) investing and financing activies in a and financing activies in a not Gazele Corporation, a (1) all sales are credit sales, (2) all credits to Accounts Receivable retlect cash receipts from customers, 3) all purchases of inventory are on credit, (4) all debits to Accounts Payable refled cash payments for inventory, and (5) Other Expenses are paid in advance and are intially debited to Prepaid Expenses the company's balance sheets and income statement follow. recently completed its calendar year 2013 operations. For the year GAZELLE CORPORATION Comparative Balance Sheets December 31,2013 and 2012 Additional Information on Year 2013 Transactions: a) Equipment was sold for cash. b) Purchased equipment costing $113,250 by paying Assets Cash $123450 615so ula 77,100c) The increase in short-term notes payable is the $43,250 cash and signing a long-term note payable for the balance. 240.600 250,700 11o result of borrowing cash. IS. 100 1000( 20so d) Any reduction in notes payable resulted froma 200,000 12,2 cash payment to reduce the notes payable. .. Accum depredistion Equipnent......... (1150 00055 e) Issued 3,000 shares of common stock for cash. Toal asset Lisbiidies and Equity Accounts payable Short-term notes payable Long-tarm notss payable $ 17,750 102.0009420 15.000 10000,cou 00 22500 ..100.000 7,500 2250O Common tock s5 par ...215.000 200,00 15 ,000 100.000 Paid-in capital in excess 30,000 of par. common stock Ratained aamings Toal labilicies and aquty .. 210000 125 500 1D4500 quy$607 730 $515,000 GAZELLE CORPORATION lecome Statement For Year Ended December 31.2013 Sales C of ods sold Gross pro Operaing eopenses $1,185000 595,000 590,000 38,600 Depreciation xpense.. Total operacing expanse.... Other gains (losses 401,450 189,550 Income bolore taxes Income txxes eoxpensa Net income (2.100) 186,450 28,350 158,100