The following financial statements are available for Harbaugh Brothers, Inc. on December 31, 2017. Harbaugh Brothers, Inc. Comparative Balance Sheets Jan. 1. 2017 Dec 31, 2017 Assets Curent Assets: Cash and cash equivalents Accounts Receivable Prepaid operating expenses Inventory Total Curent Assets Land Property & Equipment - at cost Less Accumulated depreciation Total Assets $191,000 463,000 50,000 600.000 1,304,000 500.000 3,300,000 (752.000) 54.352.000 $269,000 471,000 70,000 570.000 1,380,000 500,000 3,105,000 (632.000) 54.363.000 $213,000 Liabilities and Equity Curent Liabilities: Accounts Payable Interest Payable Income Taces Payable Total Current Liabilities Notes Payable Total Liabilities 14.000 227,000 200.000 $427,000 $178,000 18,000 10,000 206,000 150.000 $356,000 Common Stock Retained Earnings Total Equity 3,500,000 425.000 $3,925,000 3,500,000 497,000 $3.997,000 Total Liabilities and Stockholders' Equity 14.352.000 $4.353.000 $8,454,000 Harbaugh Brothers, Inc. Income Statement For year ended December 31, 2017 Sales Revernes Expenses Cost of Goods Sold 6,490,000 Other Operating Expenses 1,305,000 Depreciation Expense 320,000 Total Income from Operations Other revenues and expenses Gain on sale of Equipment Interest Expense Income Before Tax Income Tax Expense Net Income (8,115,000) 339,000 90,000 (24,000) 405,000 (161,000) $244,000 Other available information: 1. New equipment was prchased during the year. No land was puchased during the year. 2. Hxbaugh Brothers recorded a gain on equpment sold during the year. The equipment had an original cost of $720,000 and a book value of $280,000 at the time of sale. 3. No new debt was issued and no new common stock was issued during the year. 4. Dividends were declared and paid churing the year Required: a. Prepare the Statement of Cash Flows for Harbaugh Brothers, Inc. for the year ended Dec. 31, 2017 using the Direct Method to calculate cash flows from operations. Use the template on page 3 for your answer. [8 point b. Show cash flows from operations using the Indirect Method. Use space on page 4 for your answer. [3 points) c. How would the Statement of Cash Flows change if Harbaugh Brothers had acquired the new equipment in part 1 above by issuing stock rather than paying cash? Your answer should indicate any changes to cash from operating, investing or financing activity amounts as well as any related disclosures that would be required. [1 point Harbaugh Brothers, Inc. Staternent of Cash Flows For year ended Decenber 31, 2017 Cash froun Operating Activities: (Prepare using the DIRECT method) Total Cash from Operations Cash froun Investing Activities: Total Cash from Investing Activities Cash froun Financing Activities: Total Cash from Financing Activities Net Change in Cash b. Cash from Operating Activities (INDIRECT method)