Problem 4-4 Preparing the income statement and statement of cash flows (LO4-5, LO4-8) Consider the following transactions pertaining to Retail Traders Company. Amounts in parentheses indicate a de in the account. Explanation Beginning balance Credit purchases Cash sales Cost of goods sold Cash paid to suppliers Ending balance Assets = Liabilities + Owners' Equity Accounts Common Retained Cash Inventory Payable Stock Earnings $ 10,000 $ 5,000 $3,000 $ 2,000 100,000 100,000 $115,000 115,000 (90,000) (90,000) (85,000) (85,000) $ 30,000 $ 20,000 $ 20,000 $3,000 $ 27,000 Required: 1a. Based on this information, prepare an income statement. 1b. Based on this information, prepare an statement of cash flows using direct method. 1c. Based on this information, prepare an statement of cash flows using indirect method. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 10 Based on this information, prepare an income statement. Income Statement: Req 1A Req 1B > Problem 4-4 Preparing the income statement and statement of cash flows (LO4-5, LO4-8) Consider the following transactions pertaining to Retail Traders Company. Amounts in parentheses indicate a decu in the account Explanation Beginning balance Credit purchases Cash sales Cost of goods sold Cash paid to suppliers Ending balance Assets = Liabilities + Owners' Equity Accounts Common Retained Cash Inventory Payable Stock Earnings $ 10,000 $ 5,000 $3,000 $ 2,000 100,000 100,000 $115,000 115,000 (90,000) (90,000) (85,000) (85,000) $ 30,000 $ 20,000 $ 20,000 $3,000 $ 27,000 Required: 1a. Based on this information, prepare an income statement 1b. Based on this information, prepare an statement of cash flows using direct method. 1c. Based on this information, prepare an statement of cash flows using indirect method. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req1c Based on this information, prepare a statement of cash flows using direct method. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.) Direct Method Cash Flow Statement Cash flow from investing Cash flow from financing Problem 4-4 Preparing the income statement and statement of cash flows (LO4-5, LO4-8) Consider the following transactions pertaining to Retail Traders Company. Amounts in parentheses indicate a decre in the account. Explanation Beginning balance Credit purchases Cash sales Cost of goods sold Cash paid to suppliers Ending balance Assets = Liabilities + Owners' Equity Accounts Common Retained Cash Inventory Payable Stock Earnings $ 10,000 $ 5,000 $3,000 $ 2,000 100,000 100,000 $115,000 115,000 (90,000) (90,000) (85,000) (85,000) $ 30,000 $ 20,000 $ 20,000 $3,000 $ 27,000 Required: 1a. Based on this information, prepare an income statement. 1b. Based on this information, prepare an statement of cash flows using direct method. 1c. Based on this information, prepare an statement of cash flows using indirect method. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Based on this information, prepare a statement of cash flows using indirect method. (Net cash outflows and amounts to be deducted should be indicated by a minus sign.) Indirect Method Cash Flow Statement Cash flow from investing Cash flow from financing