Prepare a statement of cash flows for Washington Irving Inc using the Direct method and one for Indirect method.

Washington Irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 2017 2016 Gross sales $ 3,870,250.00 $3,250,000.00 Less: Sales returns (1) $ (275,000.00) $ (150,000.00) Net sales $ 3,595,250.00 $ 3,100,000.00 Cost of goods sold $(2,260,890.00) $(1,850,000.00) Gross profit $ 1,334,360.00 $ 1,250,000.00 Operating expenses: Selling expenses $ 526,800.00 $ 425,000.00 General and administrative expenses $ 382,500.00 $ 279,800.00 Research and development expenses $ 75,000.00 $ 125,000.00 Goodwill impairment $ 60,000.00 $ 200,000.00 Depreciation expense $ 425,000.00 $ 365,000.00 Amortization expense (leases) $ 60,872.40 $ Bad debts expense $ 24,890.00 $ Total operating expenses $ 1,555,062.40 $ 1,394,800.00 Operating income $ (220,702.40) $ (144,800.00) Other income (expense): Interest and dividend revenue $ 159,800.00 $ 126,500.00 Gain (loss) on sale of TS investments $ (1,250.00) $ Gain (loss) on sale of property $ (12,500.00) $ 165,000.00 Unrealized holding gain (loss) on TS investments $ 12,590.00 $ 18,750.00 Interest expense $ (101,287.60) $ (90,650.00) Total other income (expense), net $ 57,352.40 $ 219,600.00 Income before income taxes $ (163,350.00) $ 74,800.00 Income tax expense (benefit) $ (3,972.50) $ 26,180.00 Net income $ (159,377.50) $ 48,620.00 Other Comprehensive Income Defined benefit plans, net $ (118,900.00) $ (135,900.00) Unrealized holding gain (loss) on AFS investments $ 78,650.00 $ 32,500.00 Comprehensive income (loss) $ (199,627.50) $ (54,780.00) Washington Irving, Inc. Statements of Equity For the Year Ending January 31, 2017 Additional Paid-in Common Stock Capital 15,000.00 $ 10,860,000.00 $ - $ - 72.50 $ 45,240.00 (175.00) $ (100,450.00) - $ 25,000.00 Accumulated Other Comprehensive Retained Earnings Income $ (43,267.00) $ (28,680.00) 48,620.00 $ $ (103,400.00) $ Balance at January 31, 2016 Net income Other comprehensive income (loss) Issuance of common stock Purchase of common stock Stock-based compensation Cash dividends declared on common stock $ Balance at January 31, 2017 Net income Other comprehensive income (loss) Issuance of common stock Purchase of common stock Stock-based compensation Cash dividends declared on common stock $ Balance at January 31, 2018 10,829,790.00 $ (1,750.00) $ 3,603.00 $ (159,377.50) $ 14,897.50 $ - $ (132,080.00) (40,250.00) 100.00 (25.00) 62,400.00 (10,600.00) $ 25,000.00 $ - $ (2,250.00) $ (158,024.50) $ 14,972.50 $ 10,906,590.00 $ (172,330.00) Washington Irving, Inc. Comparative Balance Sheets As of January 31, 2018 2017 2016 $ 754,535.50 $ 257,070.00 $ 1,797,510.00 $ 311,700.00 $ 995,090.00 $ 4,115,905.50 $ 469,037.50 $ 233,450.00 $ 1,488,600.00 $ 339,200.00 $ 1,068,750.00 $ 3,599,037.50 $12,193,000.00 $ 205,420.97 $ 3,709,800.00 $ 2,300,000.00 $ 29,562.50 $ 18,437,783.47 $22,553,688.97 $12,700,000.00 $ $ 3,631,150.00 $ 2,360,000.00 $ $18,691,150.00 $22,290,187.50 Assets Current Assets: Cash and cash equivalents Accounts receivable (Net) Inventory Notes receivable Investments Total current assets Non-current Assets Property, plant, and equipment (Net) Right-of-use asset Investments Goodwill and intangible assets Deferred income taxes Total non-current assets Total Assets Liabilities and Equity Current Liabilities: Accounts payable Notes payable Income taxes payable Current lease payable Current maturity of long-term debt Total current liabilities Non-current Liabilities Long-term debt (net) Pensions Leases Payable Deferred income taxes Liability - RSU Plan Liability - Potential Additional Tax Total noncurrent liabilities Total Liabilities Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Equity Total Liabilities and Equity 230,100.00 280,900.00 3,477.00 $ $ $ $ $ $ 242,100.00 258,300.00 - 72,500.00 256,900.00 829,800.00 $ $ $ $ $ $ 514,477.00 $ 4,574,310.00 $ 4,861,100.00 $ 6,302,590.00 $ 6,151,130.00 $ 132,920.97 $ $ 51,860.00 $ 47,270.00 $ 50,000.00 $ $ 21,000.00 $ $11,132,680.97 $11,059,500.00 $ 11,962,480.97 $11,573,977.00 $ 14,972.50 $ 14,897.50 $ 10,906,590.00 $10,829,790.00 $ (158,024.50) $ 3,603.00 $ (172,330.00) $ (132,080.00) $ 10,591,208.00 $10,716,210.50 $22,553,688.97 $22,290,187.50 Washington Irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 2017 2016 Gross sales $ 3,870,250.00 $3,250,000.00 Less: Sales returns (1) $ (275,000.00) $ (150,000.00) Net sales $ 3,595,250.00 $ 3,100,000.00 Cost of goods sold $(2,260,890.00) $(1,850,000.00) Gross profit $ 1,334,360.00 $ 1,250,000.00 Operating expenses: Selling expenses $ 526,800.00 $ 425,000.00 General and administrative expenses $ 382,500.00 $ 279,800.00 Research and development expenses $ 75,000.00 $ 125,000.00 Goodwill impairment $ 60,000.00 $ 200,000.00 Depreciation expense $ 425,000.00 $ 365,000.00 Amortization expense (leases) $ 60,872.40 $ Bad debts expense $ 24,890.00 $ Total operating expenses $ 1,555,062.40 $ 1,394,800.00 Operating income $ (220,702.40) $ (144,800.00) Other income (expense): Interest and dividend revenue $ 159,800.00 $ 126,500.00 Gain (loss) on sale of TS investments $ (1,250.00) $ Gain (loss) on sale of property $ (12,500.00) $ 165,000.00 Unrealized holding gain (loss) on TS investments $ 12,590.00 $ 18,750.00 Interest expense $ (101,287.60) $ (90,650.00) Total other income (expense), net $ 57,352.40 $ 219,600.00 Income before income taxes $ (163,350.00) $ 74,800.00 Income tax expense (benefit) $ (3,972.50) $ 26,180.00 Net income $ (159,377.50) $ 48,620.00 Other Comprehensive Income Defined benefit plans, net $ (118,900.00) $ (135,900.00) Unrealized holding gain (loss) on AFS investments $ 78,650.00 $ 32,500.00 Comprehensive income (loss) $ (199,627.50) $ (54,780.00) Washington Irving, Inc. Statements of Equity For the Year Ending January 31, 2017 Additional Paid-in Common Stock Capital 15,000.00 $ 10,860,000.00 $ - $ - 72.50 $ 45,240.00 (175.00) $ (100,450.00) - $ 25,000.00 Accumulated Other Comprehensive Retained Earnings Income $ (43,267.00) $ (28,680.00) 48,620.00 $ $ (103,400.00) $ Balance at January 31, 2016 Net income Other comprehensive income (loss) Issuance of common stock Purchase of common stock Stock-based compensation Cash dividends declared on common stock $ Balance at January 31, 2017 Net income Other comprehensive income (loss) Issuance of common stock Purchase of common stock Stock-based compensation Cash dividends declared on common stock $ Balance at January 31, 2018 10,829,790.00 $ (1,750.00) $ 3,603.00 $ (159,377.50) $ 14,897.50 $ - $ (132,080.00) (40,250.00) 100.00 (25.00) 62,400.00 (10,600.00) $ 25,000.00 $ - $ (2,250.00) $ (158,024.50) $ 14,972.50 $ 10,906,590.00 $ (172,330.00) Washington Irving, Inc. Comparative Balance Sheets As of January 31, 2018 2017 2016 $ 754,535.50 $ 257,070.00 $ 1,797,510.00 $ 311,700.00 $ 995,090.00 $ 4,115,905.50 $ 469,037.50 $ 233,450.00 $ 1,488,600.00 $ 339,200.00 $ 1,068,750.00 $ 3,599,037.50 $12,193,000.00 $ 205,420.97 $ 3,709,800.00 $ 2,300,000.00 $ 29,562.50 $ 18,437,783.47 $22,553,688.97 $12,700,000.00 $ $ 3,631,150.00 $ 2,360,000.00 $ $18,691,150.00 $22,290,187.50 Assets Current Assets: Cash and cash equivalents Accounts receivable (Net) Inventory Notes receivable Investments Total current assets Non-current Assets Property, plant, and equipment (Net) Right-of-use asset Investments Goodwill and intangible assets Deferred income taxes Total non-current assets Total Assets Liabilities and Equity Current Liabilities: Accounts payable Notes payable Income taxes payable Current lease payable Current maturity of long-term debt Total current liabilities Non-current Liabilities Long-term debt (net) Pensions Leases Payable Deferred income taxes Liability - RSU Plan Liability - Potential Additional Tax Total noncurrent liabilities Total Liabilities Common Stock, $0.01 par value Additional paid-in capital Retained earnings Accumulated other comprehensive income (loss) Total Equity Total Liabilities and Equity 230,100.00 280,900.00 3,477.00 $ $ $ $ $ $ 242,100.00 258,300.00 - 72,500.00 256,900.00 829,800.00 $ $ $ $ $ $ 514,477.00 $ 4,574,310.00 $ 4,861,100.00 $ 6,302,590.00 $ 6,151,130.00 $ 132,920.97 $ $ 51,860.00 $ 47,270.00 $ 50,000.00 $ $ 21,000.00 $ $11,132,680.97 $11,059,500.00 $ 11,962,480.97 $11,573,977.00 $ 14,972.50 $ 14,897.50 $ 10,906,590.00 $10,829,790.00 $ (158,024.50) $ 3,603.00 $ (172,330.00) $ (132,080.00) $ 10,591,208.00 $10,716,210.50 $22,553,688.97 $22,290,187.50