quest A Corporation Comparative Balance Sheets as of December 31, 2016 and 2015, and it Income Statement for the year ended December 31, 2016, follow. A Corporation Comparative Balance Sheets as on December 31, 2016 and 2015 2016 2015 Assets $ $ Cash 164,800 50,000 Accounts receivable (net) 165,200 200,000 Inventory 350,000 450,000 Prepaid Expenses 2,000 3,000 Furniture and Fixtures 148,000 144,000 Accumulated Depreciation on Furniture and Fixtures (42,000) (24,000) Total Assets 788.000 823.000 Liabilities and Stockholders' Equity Accounts Payable 143,400 200,400 Income Taxes Payable 1,400 4,400 Notes Payable (long-term) 40,000 20,000 Bonds Payable 100,000 200,000 Common Stock $10 par value 240,000 200,000 Paid-in Capital in Excess of Par Value 181,440 121,440 Retained Earnings 81,760 76,760 Total Liabilities & Stockholders' Equity 788.000 823,000 A Corporation Income Statement For the Year Ended December 31, 2016 orporatio Income Statement For the Year Ended December 31, 2016 $ Sales Cost of Goods Sold Gross Margin Operating Expenses (including Depreciation Expense of $46,800) Income from Operations Other Income (Expense) Gain on Disposal of Furniture and Fixtures 7,000 Interest Expense (23,200) Income Before Income Taxes Income Taxes Net Income $ 1,609,000 1,127,800 481,200 449,400 31,800 (16.200) 15,600 (4.600) 11.000 The following is additional information about 2006: (a) furniture and fixtures that cost $35,600 with accumulated depreciation of $28,800 were sold at a gain of $7,000; (b) furniture and fixtures were purchased in the amount of $39,600; (c) a $20,000 note payable was paid and $40,000 was borrowed on a new note: (d) bonds payable in the amount of $100,000 were converted into 4,000 shares of common stock; and (e) $6,000 in cash dividends were declared and paid. 1. Using the Indirect method, prepare a Statement of Cash Flows (6 marks) 2. Prepare Net Cash Flows of Operating Activities under the Direct method (2 marks)