PROBLEM 3: TANK COMPANY PROVIDED THE FOLLOWING COMPARATIVE STATEMENT OF FINANCIAL POSITION AT YEAR-END: December 31. January 1 Cash and Cash equivalent 120.000 150.000 Accounts Receivable 370,000 210.000 Inventory 1.090.000 860.000 Prepaid expenses 80.000 90.000 Property, plant and equipment 4,300.000 3.620,000 Accumulated depreciation (840,000) (720,000) Total Assets 5,120,000 4,210,000 Accounts payable 400.000 345.000 Salaries payable 70.000 40.000 Income tax payable 35,000 15.000 Accrued interest payable 5.000 Bonds payable 600,000 Share capital 3.050,000 Retained earnings 1,100,000 760,000 Treasury shares (140.000) Total Liabilities and SHE 5,120,000 4,210,000FOLLOWING INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 Sales P4.450,000 Cost of Goods Sold Inventory - Beg 860,000 Purchases 2.630,000 Goods available for sale 3.490,000 Inventory - End (1,090.000). 2.400.000 Gross Income 2.050,000 Gain on sale of equipment 60.000 2.110,000 Expenses: Salaries 640.000 Rent 350,000 Insurance 100.000 Doubtful accounts expense 20.000 Interest expense 40.000 Depreciation 260.000 (1.410.000) Income before tax 700.000 Income tax (200.000) Net Income 500.000ADDITIONAL INFO 1. CASH DIVIDENDS OF P160,000 WERE DECLARED AND PAID DURING THE YEAR. 2. EQUIPMENT COSTING P190,000 AND WITH ACCUMULATED DEPRECIATION OF P140,000 WAS SOLD FOR P110,000 CASH. 3. NEW EQUIPMENT WAS PURCHASED FOR CASH 4. BONDS PAYABLE WERE ISSUED FOR CASH AT FACE VALUE OF P600,000. 5. THE TREASURY SHARES WERE PURCHASED AT COST OF P140,000. REQUIRED: A) PREPARE A STATEMENT OF CASH FLOWS USING DIRECT AND INDIRECT METHOD