Prepare a statement of cash flow on both a direct and indirect basis 2019 2018 Assets: Cash Accounts receivable, net Inventory Prepaid expenses Investments - held to maturity Investments - available for sale Property, plant & equipment Accumulated depreciation Patents Total Assets 225,000 95,000 52,000 13,000 45,000 25,000 750,000 (90,000) 16,000 1,131,000 100,000 84,000 60,000 20,000 10,000 20,000 600,000 (60,000) 20,000 854,000 Liabilities & Equity Accounts payable Accrued liabilities Interest payable Long-term Notes Payable Common stock Additional paid in capital Paid in capital - stock options Accumulated other comprehensive income Retained earnings Total liabilities and equity 44,000 10,000 11,000 40,000 250,000 340,000 45,000 5,000 386,000 1,131,000 50,000 20,000 9,000 50,000 200,000 250,000 10,000 265,000 854,000 Sales Cost of goods sold Gross profit Operating expenses Pre-tax Operating income Loss on sale of investments Gain on sale of equipment Pre-tax income Income taxes Net income 2,150,000 1,200,000 950,000 560,000 390,000 (5,000) 10,000 395,000 79,000 316,00 a. Stock option expense of $35,000 was recognized in 2019 b. Equipment of $200,000 was purchased using cash and $140,000 common stock, with $90,000 excess of par c. Equipment with cost of $50,000 and book value of $30,000 was sold for $40,000 d. Investments, held to maturity, with a cost of $10,000 were sold for $5,000