GAMAL INC. Income Statement For Year Ended June 30, 2015 GAMAL INC. Comparative Balance Sheets June 30, 2015 and 2014 2015 2014 $678,000 411,000 267,000 Assets Cash Sales Cost of goods sold Gross profit.... Operating expenses Depreciation expense Other expenses Total operating expenses. $58,600 67,000 $ 87,500 65,000 63,800 4.400 220,700 124,000 (27,000) $317,700 $ 44,000 51,000 86,500 5,400 186,900 115,000 (9,000) $292,900 125,600 141,400 Other gains (losses).... Gain on sale of equipment Income before taxes... Income taxes expense Net income.. 2,000 143,400 43,890 $ 99,510 Accounts receivable, net Inventory... Prepaid expenses. Total current assets Equipment... Accum. depreciation-Equipment. Total assets. Liabilities and Equity Accounts payable ..... Wages payable... Income taxes payable Total current liabilities Notes payable (long term). Total liabilities.. $ 25,000 6,000 3,400 34,400 30,000 64,400 $ 30,000 15,000 3,800 48,800 60,000 108,800 Equity Common stock, $5 par value.... Retained earnings .... Total liabilities and equity. 220,000 33,300 $317,700 160,000 24,100 $292,900 a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash. b. The only changes affecting retained carnings are net income and cash dividends paid. c. New equipment is acquired for $57,600 cash. d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 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. The question is | REQUIRES CALCULATION OF OPERATING CASH FLOW USING; FIRST THE INDIRECT METHOD AND THEN; THE DIRECT METHOD