Presented below are the 2013 income statement and comparative balance sheet information for Siegfried & Royce (S&G). Exercise 4-6 Statement of cash lows L04-9 Text: E 4-18 and 19 Siegfried &Royce Income Statement For the Year Ended December 31, 2013 (S in thousands) Sales revenue Operating expenses: $12,500 Cost of goods sold $7,300 400 250 2.200 Depreciation Rent Administrative and other Total operating expenses Income before income taxes 2,350 Income tax expense Net income Balanee Sheet information (S in thousands)Dec31.2013 Des 31 2012 Assets: Cash Accounts receivable Inventory S1,300 980 900 100 2,600 S3,280 1,250 980 150 3,000 Prepaid rent cunod Asaets Plant & equipment Less: Accumulated depreciation Total assets $7.460 Liabilities and shareholders' equity: Accounts payable Payables for administrative and other expenses Income taxes payable Note payable (due 12/31/2014) Common stock S 500 650 S 580 700 350 2,000 1,000 450 2,500 1,500 earningss and shareholders' egyui Total liabilities and shareholders' equity $7460 Required: 1. Prepare S&G's 2013 statement of cash flows, using the indirect method to present cash flows from operating activities. 2. Prepare the cash flows from operating activities section of S&G's 2013 statement of cash flows using the direct method. Assume that all purchases and sales of inventory are on account, and that there are no anticipated bad debts for accounts receivable