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Prepare using the 1) direct method and 2) indirect method, please. Burris Corporation's balance sheet accounts as of December 31, 2018 and 2017 and information
Prepare using the 1) direct method and 2) indirect method, please.
Burris Corporation's balance sheet accounts as of December 31, 2018 and 2017 and information relating to 2018 activities are presented below Debit Balances 12/31/2018 12/31/2017Information relating to 2018 activities Cash Accounts Receivable Merchandise Invento Investments (Available-for-sale Equipment Buildings Land $80,000 145,000 75,000 55,000 70,000 145,000 40,000 $610,000 S51,000 130,000 61,000 85,000 48,000 145,000 25,000 $545,000 follows: 1. Equipment that cost $10,000 and was 2. Cash dividends were declared and paid 3. Common stock was issued iin 4. Investments that cost $35,000 were 5. There were no write-offs of 40% depreciated was sold in 2018. during the year exchange for land sold during the year uncollectible accounts during the year. Totals Credit Balances Allowance for Doubtful Accounts Accu, Depreciation-Equi Accu, Depreciation- Buildin Accounts Payable Income Taxes Payable Long-Term Notes Payable Common Stock Retained Earnings $10,000 21,000 37,000 70,000 12,000 62,000 310,000 88,000 610,000 S 8,000 14,000 28,000 60,000 10,000 70,000 260,000 95,000 Totals $545,000 Burris' 2018 income statement is as follows Sales Less: Cost of goods sold Gross profit Less: Operating expenses (includes dep. exp. and bad debt ex Income from operations Other revenues and expenses S950,000 600,000 350,000 250,000 100,000 Gain on sale of investments S15,000 3,000 Loss on sale of equipment Income before taxes Income taxes Net income 12,000 112,000 45,000 $67,000 Required: (1) Prepare the operating activity section of the statement of cash flows using direct method (2) Prepare a statement of cash flows using the indirect methodStep by Step Solution
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