To prepare the statement of cash flows, accountants for Bear Electric Company have summarized 2018 activity in two accounts.

Requirement 1. prepare the statement of cash flows of bear Electric Company for the year ended December 31, 2018, using the direct method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. Start by completing the cash flows from operating activities using the direct method. Then complete the statement of cash flows and the accompanying schedule of noncash investing and financing activities.

Requirement 2. Use bear Electric's 2018 income statement and information from its selected balance sheet data to prepare a supplementary schedule of cash flows from operating activities using the indirect method.

Current assets: Cash and cash equivalents $ Accounts receivable Inventories Prepaid expenses 1,200 (27,500) 34,500 (1,000) 40,000 (22,800) (22,600) Land Equipment, net Long-term investments Current liabilities: Accounts payable Interest payable Salary payable Other accrued liabilities Income tax payable (1,200) 2,100 7,900 (10,400) (2,500) (62,900) 108,000 (16,800) 22,400 Long-term note payable Common stock Retained earnings Treasury stock van 399,000 30,000 Beginning bal Sale of long-term investment Collections from customers Issuance of common stock 49,600 20,000 661,100 47,000 17,200 140,000 Receipts of dividends Payments on accounts payable Payments of dividends Payments of salaries and wages Payments of interest Purchase of equipment Payments of other operating expenses Payment of long-term note payable Purchase of treasury stock Payment of income tax 26,400 31,200 34,100 41,900 22,400 19,100 Ending Bal 50,800 Common Stock Beginning bal Issuance for cash Issuance to acquire land Issuance to retire note payable Ending bal 84,100 47,000 40,000 21,000 192,100 (Decrease) Current assets: Cash and cash equivalents Accounts receivable Inventories Prepaid expenses 1,200 (27,500) 34,500 (1,000) 40,000 (22,800) (22,600) Land Equipment, net Long-term investments Current liabilities: Accounts payable Interest payable Salary payable (1,200) 2,100 7,900 (10,400) Other accrued liabilities Income tax payable Long-term note payable Common stock Retained earnings (2,500) (62,900) 108,000 (16,800) Treasury stock 22,400 Dora Electric Company Income Statement Year Ended December 31, 2018 Revenues: Sales revenue $ 633,600 17,200 650,800 $ Dividend revenue Total revenue Expenses and losses: Cost of goods sold Salary and wage expense Depreciation expense Other operating expense Interest expense 363,300 147,900 54,000 24,700 28,500 16,600 2,600 Income tax expense Loss on sale of investments 637,600 Total expenses and losses $ 13,200 Net income