Prepare the 2019 Statement of Cash Flows using both the direct and indirect method. (two statements)

Credit Account Title & Explanation 1 Cash Notes Payable Debit 10000 10000 2 Cash 4500 Sales Revenue 4500 150 3 Advertisement Expense Accounts Payable 150 5500 4 Accounts Receivable Sales Revenue 5500 6500 5 Raw Material Accounts Payable 6500 6 Cash 6000 Accounts Receivable 6000 800 7 Prepaid Insurance Cash 800 1000 8 Dividend Cash 1000 5500 9 Equipment Cash 5500 2500 10 Accounts Payable Cash 2500 11 Manufacturing Overheads Salaries and Corporate expenses Cash 3000 1750 4750 2300 12 Other Liabilities Cash 2300 Adjusting Entries 6850 Work in Process (Raw Material used) Raw Material (5350+6500-5000) 6850 6800 Finished Goods (850+6850+3000-3900) Work in process 6800 3800 Cost of Goods Sold (9550+6800-12550) Finished Goods 3800 600 96 b 97 Depreciation Expense - Equipment Accumulated Depreciation - Equipment 600 98 99 C 600 Insurance expense Prepaid Insurance 100 600 500 Interest Expense (10000 *6% * 10/12) Interest Payable 500 101 102 d 103 104 105 e 106 107 400 Income Tax Expense Income Tax Payable 400 108 T- Accounts 109 110 Cash 5000 10000 4500 6000 Accounts Receivable 2000 6000 5500 111 112 113 114 115 116 800 1000 5500 2500 4750 2300 8650 1500 119 Raw Material 5350 6500 6850 850 Work In Process 6800 6850 3000 3900 121 122 5000 3800 Finished Goods 9550 6800 12550 Equipment 11000 5500 16500 127 Accumulated Dep. 3500 600 4,100 Prepaid Insurance 600 600 800 800 Accounts Payable 2500 Notes Payable 10000 135 136 137 3000 150 6500 138 7150 10000 141 142 Other Liabilities 2300 Interest Payable 500 9550 143 7250 500 146 Income Tax Payable 147 148 Manufacturing Overheads 3000 3000 400 149 400 Sales Revenue Advertisment Expense 150 153 4500 5500 155 156 157 10000 150 Salaries corporate expense 1750 Dividend 1000 1000 159 160 161 162 163 1750 164 165 Insurance Expense 600 Cost of Goods Sold 3800 166 600 3800 167 168 Depreciation expense 600 Interest expense 500 170 171 172 600 500 175 Income Tax expense 400 Common Stock 10600 176 400 10600 178 179 180 Retained Earnings 181 1000 7700 2200 182 183 184 185 8900 186 Prepare the 2019 Income Statement and Balance Sheet. 187 188 189 10000 3800 6200 190 191 192 193 194 Income Statement Sales Revenue Cost of Goods Sold Gross Profit Operating expenses Advertisment Expense 150 Salaries corporate expense 1750 Insurance Expense 600 Depreciation expense 600 Operating Income Before Interest and Tax Less Interest expense Net Income Before Tax Less Tax expense Net Income 195 196 197 198 3100 3100 500 2600 400 199 200 201 2200 202 203 Balance Sheet 205 206 8650 1500 207 208 209 Assets Cash Accounts Receivable Inventories: Raw materials Work in process Finished goods Prepaid Insurance Total Current Assets Equipment Less acc depreciation Total Assets 5000 3900 12550 210 211 212 21450 800 32400 213 16500 4,100 214 12,400 44,800 215 217 218 Liabilities & Equity Accounts payable Notes Payable Other liabilities Income Tax Payable Interest Payable Total current liabilities Equity Common stock Retained earnings Total liabilities and equity 7150 10000 7250 400 500 222 223 25300 226 10600 8900 19500 44800