Preston, Inc. has prepared the following comparative balance sheets for 2020 and 2021 2021 2020 Cash $ 282,000 $ 153,000 Accounts receivable 139,000 117,000 Inventory 150,000 180,000 Prepaid expenses 18,000 27,000 Plant assets 1,295,000 1,050,000 Accumulated depreciation (450,000) (375,000) Patent 153,000 174,000 $1.587.000 $1,326.000 $ 153,000 60,000 Accounts payable Accrued liabilities Mortgage payable Preferred stock Additional paid-in capital-preferred Common stock Retained earnings $ 168,000 42,000 450,000 - 525,000 120,000 600,000 129.000 $1.587.000 600,000 66.000 $1326.000 The income statement for 2021 is as follows: Sales revenue Cost of sales Gross profit Operating expenses Net income $1,980,000 1,089,000 891,000 690.000 $201.000 1. The change in plant assets is only related to the purchase of plant assets with cash in 2021. 2. Preston issued preferred stock in 2021 to supplement its cash. 1. The change in plant assets is only related to the purchase of plant assets with cash in 2021. 2. Preston issued preferred stock in 2021 to supplement its cash. 3. Preston paid off its mortgage payable in 2021. 4. The change in accumulated depreciation is only related to depreciation expense in 2021. 5. Preston paid dividends payment of $138,000 for the year. 6. All sales during the year were made on account. 7. All inventories were purchased on account, comprising the total accounts payable account. 8. Operating expenses shown below on the income statement include depreciation expense patent amortization expense, insurance expense related to prepaid insurance, and other operating expenses. Other operating expenses were accrued to accrued liabilities Instructions (a) From the information above, prepare a statement of cash flows (indirect method) for Preston, Inc. for the year ended December 31, 2021. (b) From the information above, prepare a schedule of cash provided by operating activities using the direct method