Required: Prepare a statement of cash flows using direct and indirect method.

Note: Using excel would be appreciated for clearer presentation.

PROBLEM 3: TANK COMPANY PROVIDED THE FOLLOWING COMPARATIVE STATEMENT OF FINANCIAL POSITION AT YEAR-END: Cash and Cash equivalent Accounts Receivable Inventory Prepaid expenses Property, plant and equipment Accumulated depreciation Total Assets Accounts payable Salaries payable Income tax payable Accrued interest payable Bonds payable Share capital Retained earnings Treasury shares Total Liabilities and SHE December 31. 120.000 370,000 1,090,000 80.000 4.300.000 (840,000) 5,120,000 400,000 70,000 35,000 5.000 600,000 3,050,000 1,100,000 (140,000) 5,120,000 January 1 150,000 210,000 860,000 90,000 3.620.000 (720,000) 4,210,000 345.000 40,000 15,000 760,000 4,210,000 FOLLOWING INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2019 2.110,000 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 Expenses: Salaries 640.000 Rent 350.000 Insurance 100,000 Doubtful accounts expense 20.000 Interest expense 40.000 Depreciation 260.000 Income before tax Income tax Net Income (1.410.000) 700,000 _1200,000) 500.000 ADDITIONAL 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