Stuck on direct method & indirect method

Use the following financial statements and additional information. 2018 LAUDERDALE INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 2019 Assets Cash $ 83,900 Accounts receivable, net 76,000 Inventory 66,000 Prepaid expenses 6,500 Total current assets 232,400 Equipment 212,000 Accumulated depreciation-Equipment (54,000) Total assets $ 390,400 Liabilities and Equity Accounts payable $ 30,000 Wages payable 7,000 Income taxes payable 4,000 Total current liabilities 41,000 Notes payable (long term) 38,000 Total liabilities 79,000 Equity Common stock, $5 par value 270,000 Retained earnings 41,400 Total liabilities and equity $ 390,400 $ 15,300 59,000 92,000 8, 100 174,400 196,000 (18,000) $ 352,400 $ 36,000 17,000 4,400 57,400 75,000 132,400 190,000 30,000 $ 352,400 LAUDERDALE INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $ 97,000 Other expenses 113,000 Total operating expenses $ 1,146,000 701,000 445,000 $ 210,000 235,000 Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense Net income 9,200 244,200 74,750 $ 169,450 Additional Information a. A $37,000 note payable is retired at its $37,000 carrying (book) value in exchange for cash. b. The only changes affecting retained earnings are net income and cash dividends paid. C. New equipment is acquired for $95,000 cash. d. Received cash for the sale of equipment that had cost $79,000, yielding a $9,200 gain. e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement f. All purchases and sales of inventory are on credit. UCIC Requirement UCC Journal Trial Balance Direct Method ANIVE Ledger Method Using the income statement, the comparative balance sheet, and the additional information given above, reconstruct the entries for the summarized activity of the current fiscal year. Upon completion, the trial balance tab should agree with the June 30, 2019 balances View transaction list View journal entry worksheet No Date Account Title Credit 1 June 30 Cash Debit 1,129,000 17.000 Accounts receivable, net Sales 1,146,000 N 2 June 30 701,000 6,000 Cost of goods sold Accounts payable Inventory Cash 26,000 681,000 97,000 3 June 30 Depreciation expense Accumulated depreciation - Equipment 97.000 4 June 30 113,000 10,000 Other expenses Wages payable Prepaid expenses Cash 1,600 121,400 27,200 61,000 5 June 30 Cash Accumulated depreciation Equipment Equipment Rain on a warmant 70,000 om 1 Alavt 6 June 30 Income taxes expense Income taxes payable Cash 74,750 400 75,150 7 June 30 38,000 Notes payable (long-term) Cash 38,000 8 June 30 95,000 Equipment Cash 95,000 9 June 30 80,000 Cash Common stock, $5 par value 80,000 10 June 30 1.146,000 9,200 Sales Gain on sale of equipment Income summary 1,155,200 985.750 11 June 30 Income summary Cost of goods sold Depreciation expense Other expenses Income taxes expense 701,000 97,000 113.000 74.750 169.450 12 June 30 169.450 Income summary Retained earnings 158,050 13 June 30 158,050 Retained oamings Cash General General Requirement Indirect Trial Balance Direct Method Journal Ledger Method Begin by selecting "Post-closing" from the drop-down menu. Verify that each balance agrees with the June 30, 2019 balance sheet above. Post-closing LAUDERDALE INCORPORATED Trial Balance June 30, 2021 Account Title Debit Credit $ 82.900 76,000 66,000 6,500 212,000 Cash Accounts receivable, net Inventory Prepaid expenses Equipment Accumulated depreciation - Equipment Accounts payable Wages payable Income taxes payable Notes payable (long-term) Common stock, $5 par value Retained earnings Total 54,000 30,000 7.000 4.000 37,000 270,000 41,400 443,400 $ 443,400 $ Prepare the statement or cash rows for the year ended June 30, 201y using the Direct Metnog. nint use une casni account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negative values. Post-closing LAUDERDALE INCORPORATED Statement of Cash Flows (Direct Method) For Year Ended June 30, 2019 Cash flows from operating activities: Cash received from customers $ 1,129,000 Cash paid for merchandise (681,000) Cash paid for operating expenses (121,400) Cash paid for income taxes (75,150) $ 251,450 Not cash provided by operating activities Cash flows from investing activities: Cash received from sale of equipment Cash paid for equipment 27,200 (95,000) (67,800) Net cash used by Investing activities Cash flows from financing activities Cash received from stock Issuance Cash paid to retire notes Cash pald for dividends 80,000 (37.000) (158,050) $ Net cash used by financing activities Net increase in cash Cash balance at prior year-end (115.050) 68,600 15,300 son PARNA Requirement General Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the operating activities section of the statement of cash flows using the Indirect method. Enter reductions to net cash provided by operating activities as negative values. Post-closing LAUDERDALE INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Cash flows from operating activities: Net Income Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Decrease in income taxes payable Net cash provided by operating activities Net cash provided by operating activities, using the direct method: $ 251,450