Statement of Income and Retained Earnings
For Year Ended December 31, 2012
Sales Revenue			$ 300,000.00
Cost of Goods Sold			$ 120,000.00
Gross Profit:			$ 180,000.00
Operating expenses
	Salaries	$ 50,000.00
	Depreciation expense	$ 6,000.00	$ 56,000.00
Operating income:			$ 124,000.00
Other revenues/expenses
	Loss on sale of equipment	$ 2,500.00
	Interest Expense	$ 2,500.00	$ 5,000.00
Income before taxes			$ 119,000.00
	Income tax expense		$ 48,000.00
Net Income			$ 71,000.00
Retained Earnings
	January 1, 1992		$ 87,000.00
	Subtotal		$ 158,000.00
Cash dividends paid			$ 8,000.00
Retained Earnining, Dec 31, 1992			$ 150,000.00

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Comparative Statement of Financial Position
As of December 31, 2012 & 2011
Assets		12/31/1992	12/31/1991	Change
Cash		$ 98,500.00	$ 86,000.00	$ 12,500.00
Accounts Recievable, net		$ 50,000.00	$ 30,000.00	$ 20,000.00
Inventory		$ 70,000.00	$ 55,000.00	$ 15,000.00
Land		$ 200,000.00	$ 200,000.00	$ -
Plant and equipment		$ 80,000.00	$ 69,500.00	$ 10,500.00
Accumulated Depreciation		$ (15,500.00)	$ (13,500.00)	$ (2,000.00)
	Total Assets:	$ 483,000.00	$ 427,000.00	$ 56,000.00
Liabilities & Shareholders Equity
Accounts Payable		$ 15,000.00	$ 20,000.00	$ (5,000.00)
Salaries Payable		$ 10,000.00	$ 7,000.00	$ 3,000.00
Taxes Payable		$ 3,000.00	$ 13,000.00	$ (10,000.00)
10% convertible bonds payable			$ 100,000.00	$ (100,000.00)
Common stock, $40 par value		$ 244,000.00	$ 160,000.00	$ 84,000.00
Additional paid in capital		$ 61,000.00	$ 40,000.00	$ 21,000.00
Retained earnings		$ 150,000.00	$ 87,000.00	$ 63,000.00
	Total liabilities & shareholder's equity:	$ 483,000.00	$ 427,000.00	$ 56,000.00

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Additional Information:
1. Additional equipment acquired for $200,000. Also sold equipment costing 9,500 with a book value of $5,500 for $3,000 Cash.
					2. On March 30, 2012, 100,000 of 10% convertible bonds, issued at face value with interest payment dates of June 30 and December 31, were converted into 2,000 shares of ABC Corporation at $40 par value common stock. The stock had a market value of $50 per share at the date of conversion.
3. ABC paid dividends of $8,000 during 2012
4. ABC issued an additional 100 shares of common stock for cash during 2012 ----------------------------------------------------------------------------------------------------------- What I need assistance on is preparing a Cash Flow Statement: (a) Using the Direct Method (b) Using the Indirect Method