Question Completion Status: Recent comparative balance sheets and income statements of Chuchman Medical Supplies follow: Chuchman Medical Supplies Balance Sheets As of December 31 Assets 2019 2018 Equities (L + OE) 2019 2018 Cash Accounts receivable Inventory Current Assets $ 6,700 25,100 91,500 $123,300 $ 5,100 26,500 89,400 $121,000 Accounts payable Accrued liabilities Unearned revenue Current liabilities $ 30,600 29,100 1,800 $ 61,500 $ 33,500 28,200 2.300 $ 64,000 Notes payable 76,000 100,000 Land Equipment, net 89,900 53.400 60,600 49.200 Common stock Retained earnings Total Equities (L + OE): 78,700 50.400 $266,600 64,100 2.700 $ 230,800 Total Assets: $266,600 $230,800 Chuchman Medical Supplies Income Statements For the Years Ending December 31, 2019 2018 $200,000 8,400 $208,400 $190,000 S2200 $197,200 Sales revenue Interest revenue Revenues Expenses Cost of goods sold Salaries Depreciation Other operating expenses Interest Income tax expense Total Expenses Net Income $ 65,600 22,800 4,900 10,800 11,700 29.000 $140800) $63.600 $ 62,000 20,600 4,500 9.700 14,200 25.900 ($136.900 S 0.300 Chuchman Medical Supplies had no noncash investing and financing transactions during 2019. During the year, Chuchman Medical Supplies made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions estion Completion Status: Chuchman Medical Supplies Income Statements For the Years Ending December 31, 2019 2018 $200,000 8,400 $208,400 $190,000 $7.200 $197,200 Sales revenue Interest revenue Revenues Expenses Cost of goods sold Salaries Depreciation Other operating expenses Interest Income tax expense Total Expenses Net Income $ 65,600 22,800 4,900 10,800 11,700 29,000 ($144.800) $63.600 $ 62,000 20,600 4,500 9,700 14,200 25,900 ($136.900) $ 60,300 Chuchman Medical Supplies had no noncash investing and financing transactions during 2019. During the year, Chuchman Medical Supplies made no sales of land or equipment, no issuance of notes payable, no retirement of stock, and no treasury stock transactions. Required: (a: 30 points b: 10 points) a. Prepare a complete 2019 statement of cash flows using the Direct Method to report Cash Provided by (Used in) Operating Activities (The statement must be in good form!!) b. Prepare the required reconciliation of Net Income to Cash Provided by (Used in) Operating Activities