Prepare a statement of cash flows using the direct method and prepare a statement of cash flows using the indirect method.

I Aa- Po AJ AaBbcc AaBbcc AaBb AaBbC AaBbccc 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 A Styles Paragraph Homework 4 Due November 3, 2020 Instructions: using the balance sheet and income statement provided below, 1. Prepare a Statement of Cash Flows using the DIRECT METHOD in good form. Show your computations below your statement. No credit for statements not showing computations of amounts. 2. Prepare a Statement of Cash Flows using the INDIRECT METHOD in god form. Show your computations below your statement. No credit for statements not showing computations of amounts. NOTE: You may use Excel to prepare your statements, but your homework can only be submitted as a pdf or as a WORD doc. Joe's Photography Inc. Balance Sheet As of 12/31/2019 and 12/31/2020 12/31/2019 12/31/2020 change Assets Cash Accounts Receivable Inventory Prepaid Rent Total Current Assets $1,850,000 $3,875,000 $2,000,000 $925,000 $2,000,000 $4,625,000 $3,364,000 $940,000 $150,000 $750,000 $1,364,000 $15,000 $8,650,000 $10,929,000 $2,279.000 Investments $1,500,000 $750,000 -$750,000 $2,500,000 $3,000,000 $500,000 Property Plant and Equipment Vehicle s Accum Depreciation on Vehicles Total PPE Total Assets -S1 400.000 $1.100.000 $11.250.000 $1 200.000 $1,800,000 $13.479.000 $200,000 $700,000 $2,229,000 Tiabilizare and Entitat ayout References Malings - Aaro EEE E ALT D.A. - c b bccc 1 Normal 1 No Spac... Heading 1 Heading 2 Heading 3 Styles Paragraph Tiupery and equipe Vehicle $2,500,000 $3,000,000 $500,000 S Accum Depreciation on Vehicles Total PPE Total Assets -$1.400,000 $1,100,000 $11.250,000 -$1,200,000 $1.800.000 $13.479,000 $200,000 $700,000 $2,229,000 Liabilities and Equity Liabilities Accounts Payable $710.000 $964,000 $254,000 I $600,000 $800,000 $140,000 $2,250,000 $690.000 $400,000 $50,000 $2,104,000 $90,000 -$400,000 -$90,000 -$146,000 Advertising Payable Taxes Payable Salaries Payable Total Liabilities Equity Common Stock Retained Earnings Total Equity Total Liabilities and Equity $5,000,000 $4,000,000 $9,000,000 $11.250.000 $5,000,000 $6 375.000 $11,375,000 $13.479.000 SO $2,375,000 $2,375,000 $2,229,000 Joe's Photography Inc. Income Statement For the year ended 1231 2020 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Dancion Experte $20,000,000 -6000000 $14,000,000 IS2001000 Homework 4 Due November 3-1 - Saved to this PC zach. Layout References Mailings Review View Help O Search A A Aa- to EE. ALT A-DA- | bt bccc 1 Normal 11 No Spac... Heading 1 Heading 2 Heading 3 Styles Paragraph Joes Photography Inc. Income Statement For the year ended 12/31/2020 $20,000,000 -6000000 $14,000,000 Net Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Depreciation Expense Advertising Expense Rent Expense Salaries and Wages Expense Other Admin Expenses Total Operating Expenses Net operating income Other Gains / Income Gain on Sale of Vehicles Income Before Tax Income Tax expense Net Income $200,000 $1,500,000 $2,000,000 $3,000,000 $2.000.000 -$8,700.000 $5,300,000 150,000 $5,450,000 -$3,000,000 2.450.000 ADDITIONAL INFORMATION: Additional information (I encourage you to make the entries and prepare the t-accounts to help you prepare the SCF) 1. 1/3/2020 Fleet Vehicles costing $1,200,000 with $400,000 accumulated depreciation were sold for $950,000 Cash. 2. 1/2/2020 Machines Costing $1,700,000 were purchased for cash. 3. 12/13/2020 Cash dividends of $75,000 were paid. No dividends were paid in 2019