Statement of cash flow for The Cookie company

The Cookie Company Balance Sheet As of December 31, 12/31/2016 12/31/2015 $ 154,700 176,500 243,200 303,300 65,000 Accounts receivable 5,900 2,300 7,900 5,860 4,700 0,000 0,000 251,300 317,800 Investments Equipment Accumulated depreciation Total Assets 275,000 (103,200 $1,070,100 $ 959,800 95,000 365,000 (113,700) Liabilities & Shareholders' equity 28,300 8,000) 5,000 3,660 Accounts payable Accrued expenses Dividends payable Common stock $ 248,300 $ 235,700 12,500 20,000 15,000 12,000 110,000 569,600 $ 1,070,100 $ 959,800 900 24,000 Paid in capital in excess of par value Retained earnings Total liabilities and shareholders' equity 185,000 586,900 46,700 12,500 8,400 0,000 The Cookie Co. Income Statement For the year ending December 31, 12/31/2016 12/31/2015 1,250,000 1,350,000 880,000 470,000 0,000 759.000 491,000 Cost of merchandise sold Gross proft Operating expenses: Depreciation expense Other operating expense Operating income Gain on sale of investments Gain on sale of equipment Income tax expense . 1,250 9,810 20,500 284,500 186,000 14,000 286,300 3,660 61,000 $ 117,000 $ 103,700 85,000 0 Net income The following additional information was taken from the records: a. Equipment and land were acquired for cash. b. Equipment costing $10,000 with a zero book vlaue was sold for $2,000. c. The investments were sold for $79,000 cash d. The common stock was issued for cash. e. Dividends were paid for the year 2016 Instructions 1. Prepare a statement of cash flows using the indirect method for the year 2016. 2. Prepare a statement of cash flows using the direct method for the year 2016