The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Poke Company. Additional information from Poke's accounting records is provided also. POKE COMPANY POKE COMPANY Income Statement Comparative Balance Sheets For Year Ended December 31, 2021 December 31, 2021 and 2020 ($ in millions) ($ in millions) Revenues 2021 2020 Sales revenue $ 320 Assets Investment revenue 15 Cash $ 57 $ 55 Gain on sale of Accounts receivable 5 S 340 181 170 investments Less: Allowance for Expenses uncollectible accounts (8) (6) Cost of goods sold 125 Prepaid insurance 7 12 Salaries expense 55 Inventory 170 165 Depreciation expense 25 Long-term investment 66 90 Amortization expense 1 Land 150 150 Bad debt expense 7 Buildings and equipment 290 270 Insurance expense 13 Less: Accumulated Interest expense 30 depreciation (85) (75) Loss on sale of building 42 298 Trademark 24 25 Income before tax 42 $852 856 Income tax expense 20 Liabilities Net income $ 22 Accounts payable $ 30 $ 45 Salaries payable 3 8 Deferred tax liability 18 15 Additional information from the accounting Lease liability 68 0 records: Bonds payable 145 275 a. Investment revenue includes Poke Less: Discount on bonds (22) (25) Company's $6 million share of the net Shareholders' Equity income of Central Fiber Optics Common stock 310 290 Corporation, an equity method investee. Paid-in capitalexcess of 95 85 b. A long-term investment in bonds, par originally purchased for $30 million, Preferred stock 50 0 was sold for $35 million. Retained earnings 155 163 c. Pretax accounting income exceeded $852 $856 taxable income, causing the deferred income tax liability to increase by $3 million. | d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $3 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. Annual lease payments of $12 million are paid at Jan. 1 of each year starting in 2021. f. $130 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $30 million. Required: 1. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. 2. Prepare and present cash flows from operating using the indirect method. The comparative balance sheets for 2021 and 2020 and the statement of income for 2021 are given below for Poke Company. Additional information from Poke's accounting records is provided also. POKE COMPANY POKE COMPANY Income Statement Comparative Balance Sheets For Year Ended December 31, 2021 December 31, 2021 and 2020 ($ in millions) ($ in millions) Revenues 2021 2020 Sales revenue $ 320 Assets Investment revenue 15 Cash $ 57 $ 55 Gain on sale of Accounts receivable 5 S 340 181 170 investments Less: Allowance for Expenses uncollectible accounts (8) (6) Cost of goods sold 125 Prepaid insurance 7 12 Salaries expense 55 Inventory 170 165 Depreciation expense 25 Long-term investment 66 90 Amortization expense 1 Land 150 150 Bad debt expense 7 Buildings and equipment 290 270 Insurance expense 13 Less: Accumulated Interest expense 30 depreciation (85) (75) Loss on sale of building 42 298 Trademark 24 25 Income before tax 42 $852 856 Income tax expense 20 Liabilities Net income $ 22 Accounts payable $ 30 $ 45 Salaries payable 3 8 Deferred tax liability 18 15 Additional information from the accounting Lease liability 68 0 records: Bonds payable 145 275 a. Investment revenue includes Poke Less: Discount on bonds (22) (25) Company's $6 million share of the net Shareholders' Equity income of Central Fiber Optics Common stock 310 290 Corporation, an equity method investee. Paid-in capitalexcess of 95 85 b. A long-term investment in bonds, par originally purchased for $30 million, Preferred stock 50 0 was sold for $35 million. Retained earnings 155 163 c. Pretax accounting income exceeded $852 $856 taxable income, causing the deferred income tax liability to increase by $3 million. | d. A building that originally cost $60 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged sections were sold for $3 million. e. The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $80 million. Annual lease payments of $12 million are paid at Jan. 1 of each year starting in 2021. f. $130 million of bonds were retired at maturity. g. $20 million par value of common stock was sold for $30 million, and $50 million of preferred stock was sold at par. h. Shareholders were paid cash dividends of $30 million. Required: 1. Prepare the statement of cash flows. Present cash flows from operating activities by the direct method. 2. Prepare and present cash flows from operating using the indirect method