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II. Cash Flow Problem Lawrence Inc.'s Comparative Balance Sheets for 2020 and 2019 and Income Statement for 2020 are presented below. Lawrence Inc. Comparative Balance Sheets December 31, 2020 and 2019 ($ in 000s) Assets Cash Accounts Receivable Inventory Land Building Less: Accum. Depreciation Equipment Less: Accum. Depreciation Patent 2020 $2,400 2.400 3,600 2,700 3,600 (1.200) 11,400 (2.100) 4,800 $27.600 2019 $1,500 1.800 2,100 2,400 3,600 (1,080) 9,000 (1,920) 6,000 $23.400 Liabilities Accounts Payable Accrued Expenses Payable Note Payable-Land Stockholders' Equity Common Stock Retained Earnings $3,000 1,200 600 $ 1,800 900 0 15,600 7,200 $27.600 14,700 6,000 $23.400 Lawrence Inc. Income Statement For Year Ended December 31, 2020 ($ in 000) Revenues and Gains Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Income from Operations Other Revenues and Gains Gain on Sale of Land Other Expense and Losses Loss on Sale of Equipment Net Income $10,580 2.400 $8.180 4.580 $3,600 360 (60) $3.900 Additional information from the accounting records: 1. Depreciation Expense and Amortization Expense are included in Operating Expenses. 2. During 2020. signed a Note Payable in exchange for Land. 3. During 2020, equipment with a cost of $1,200,000 (90% depreciated) was sold. 4. The statement of retained earnings reveals reductions for both stock and cash dividends. The stock dividends were $900,000. Instructions: 1. Prepare the Statement of Cash Flows using the direct method. 2. Prepare the Operating Activities Section of the Statement of Cash flows using the indirect method