Problem 4-4 Preparing the income statement and statement of cash flows (L04-5, LO4-8) Consider the following transactions pertaining to Retail Traders Company. Amounts in parentheses indicate a decrease 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 Earings $ 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