The following balance sheets and income statement were taken from the records of Rosie- Lee Company: Rosie-Lee Company Comparative Balance Sheets At June 30, 20X1 and 20X2 1 20X1 20X2 2 Assets 3 Cash $270,000.00 $333,000.00 4 Accounts receivable 126,000.00 144,000.00 5 Investments 0.00 54,000.00 6 Plant and equipment 180,000.00 189,000.00 7 Accumulated depreciation (54,000.00) (57,600.00) 8 Land 36,000.00 54,000.00 9 Total assets $558,000.00 $716,400.00 10 Liabilities and equity 11 Accounts payable $72,000.00 $90,000.00 12 Mortgage payable 108,000.00 0.00 13 Bonds payable 0.00 90,000.00 14 Preferred stock 36,000.00 15 Common stock 180,000.00 288,000.00 16 Retained earnings 162,000.00 248,400.00 17 Total liabilities and equity $558,000.00 $716,400.00 Rosie-Lee Company Income Statement For the Year Ended June 30, 20X2 1 Sales $920,000.00 2 Cost of goods sold (620,000.00) 3 Gross margin $300,000.00 4 Operating expenses (177,600.00) 5 Net income $122,400.00 Additional transactions were as follows:

A. Sold equipment costing $21,600, with accumulated depreciation of $16,200, for $3,600. B. Issued bonds for $90,000 on December 31. C. Paid cash dividends of $36,000. D. Retired mortgage of $108,000 on December 31. Required: 1(a). Prepare a schedule of operating cash flows using the indirect method. 1(b). Prepare a schedule of operating cash flows using the direct method. 2. Prepare a statement of cash flows using the indirect method.