Requirements 1. Prepare the statement of cash flows of Mary McGuire Design Studio for the year ended June 30, 2018, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current account changes except for the short-term Notes Payable changes result from operating transactions. 2. Prepare a supplementary schedule showing cash flows from operations using the direct method. The accounting records provide the following: collections from customers, $260,000; interest received, $1,900; payments to suppliers, $158,600; payments to employees, $40,200; payments for income tax, $12,600; and payment of interest, $4,700. Print Done Requirements 1. Prepare the statement of cash flows of Mary McGuire Design Studio for the year ended June 30, 2018, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current account changes except for the short-term Notes Payable changes result from operating transactions. 2. Prepare a supplementary schedule showing cash flows from operations using the direct method. The accounting records provide the following: collections from customers, $260,000; interest received, $1,900; payments to suppliers, $158,600; payments to employees, $40,200; payments for income tax, $12,600; and payment of interest, $4,700. Print Done Requirement 1. Prepare the statement of cash flows of Mary McGuire Design Studio for the year ended June 30, 2018, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current accou changes except for the short-term Notes Payable changes result from operating transactions. Start by completing the cash flows from operating activities using the indirect method. Then complete the statement of cash flows. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Mary McGuire Design Studio, Inc. Statement of Cash Flows (Indirect Method) Cash flows from operating activities: Adjustments to reconcile net income to Year Ended June 30, 2018 net cash provided by operating activities: Net cash provided by (used for) operating activities Cash flows from investing activities: Net cash provided by (used for) investing activities Cash flows from financing activities: Net cash provided by (used for) financing activities Net increase (decrease) in cash Noncash investing and financing activities: Total noncash investing and financing activities Requirement 2. Prepare a supplementary schedule showing cash flows from operations by the direct method. The accounting records provide the following: collections from customers, $260,000; interest received, $1,900; payments to suppliers, $158,600; payments to employees, $40,200; payments for income tax, $12,600; and payment of interest, $4,700. (Use parentheses or a minus sign for numbers to be subtracted and for a net decrease in cash.) Mary McGuire Design Studio, Inc. Partial Statement of Cash Flows (Direct Method) Year Ended June 30, 2018 Cash flows from operating activities: Receipts: Total cash receipts Payments: Total cash payments Net cash provided by (used for) operating activities Mary McGuire Design Studio, Inc. Comparative Balance Sheets June 30, Increase 2018 2017 (Decrease) Current assets: Cash $ 28,900 $ 1,600 $ 27,300 Accounts receivable 59,000 52,000 7,000 Inventories 97,700 60,500 37,200 Prepaid expenses 3,700 2,100 1,600 Land 22,200 92,800 (70,600) Equipment, net 74,800 73,300 1,500 Long-term investment 22,000 5,200 16,800 $ 308,300 $ 287,500 $ 20,800 Current liabilities: Notes payable, short-term $ 12,900 $ 19,000 $ (6,100) Accounts payable 34,300 41,500 (7,200) Income tax payable 13,400 14,800 (1,400) Accrued liabilities Interest payable Salary payable Long-term note payable Common stock Retained earnings 14,900 9,300 5,600 4,000 3,000 1,000 4,800 3,200 1,600 50,700 93,800 (43,100) 68,100 61,500 6,600 105,200 41,400 63,800 $ 308,300 $ 287,500 $ 20,800