Please post direct and indirect method.

Williams Company, a merchandiser, recently completed its calendar year 2017 operations. For the year. (1) all sales are credit sales. (2) all credits to Accounts Receivable reflect cash receipts from customers. () all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory. and (5) Other Expenses are paid in advance and are initially debited to Prepaid Experies. The company's income statement and balance sheets follow WILLIAMS COMPANY Comparative Balance Sheets December 31, 2017 and 2016 2017 2016 Assete Cash $ 63,500 $ 69,500 Accounts receivable 74,000 57,000 Inventory 279.000 255,000 Prepaid expenses 3,600 4.500 Total current assets 420, 100 386,000 Equipment 271,000 186,000 Accum. depreciation-Equipment (60,000) (29.000 Total assets $631,100 $493,000 Liabilities and Equity Accounts payable $ 55,100 $119,000 Short-ter notes payable 12,000 7.000 Total current liabilities 67, 100 126,000 Long-term notes payable 79,000 59,000 Total liabilities 146,100 185,000 Equity Common stock, $5 par value 195,500 170,000 Paid-in capital in excess of par, common stock 76,500 0 Retained earnings 213,000 138,000 Total liabilities and equity $631, 100 $493,000 $974,000 367,000 607,000 WILLIAMS COMPANY Income Statement For Year Ended December 31, 2017 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 27,000 Other expenses 221,000 Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income 248,000 (7,900) 351, 100 61,000 $290, 100 Additional Information on Year 2017 Transactions a. The loss on the cash sale of equipment was $7,900 (details in b). b. Sold equipment costing $74,000, with accumulated depreciation of $46,000, for $20,100 cash c. Purchased equipment costing $159,000 by paying $34,000 cash and signing a long-term note payable for the balance. d. Borrowed $5,000 cash by signing a short-term note payable. e. Paid $105,000 cash to reduce the long-term notes payable. f. Issued 5,100 shares of common stock for $20 cash per share. g. Declared and paid cash dividends of $215,100. Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the December 31, 2017 balances. Date Gerneral Journal | DR CR 974,000 174,000 2/31/2017 Sales Account Rocirable cash lastpoo