Statement of Cash Flow

I need (b) the Direct method

Dano Company's comparative balance sheet and income statement for last year appear below: Comparative Balance Sheet 12/31/17 12/31/16 Cash 57,000 23,000 90,000 69,000 Accounts receivable 30,000 49,000 Inventory Prepaid expenses 9,000 15,000 270,000 Long-term investments 90,000 Plant and equipment 450,000 450,000 Accumulated depreciation 273,000 231,000 Total assets 633,000 565,000 22,000 45,000 Accounts payable Accrued liabilities 31,000 24,000 Taxes payable 8,000 25,000 Bonds payable 60,000 00,000 Deferred taxes 39,000 24,000 Common stock 140,000 10,000 Retained earnings 323 000 237,000 Total liabilities and owners 633,000 565,000 equ Income Statement For the Year Ended December 31, 2017 $850,000 Sales Less: costs of goods sold 410,000 Gross margin 440,000 Less: operating expenses 280,000 Net operating income 60,000 Less: income taxes 48,000 Net income The company declared and paid S26,000 in cash dividends during the year. Required Write a letter to the president of the company explaining the cash flows that occurred during this accounting year for the following situations: a. Using the indirect method, construct in good form the Statement of Cash Flows for the year. b. Using the direct method, construct in good form, the Statement of Cash Flows for the year