use the direct method

why doppreferred Direct Ehrens Corporation Balance Sheets At December 31 I and why idirect 2008 wa Stend of cash fil Assets: Cash Accounts receivable.... Merchandise inventory.. Long-term investments ... Equipment............. Accumulated depreciation. Total assets... $ 24,6-40 32,180 73,125 55.900 175,500 (33.550) $3274795 S 23,040 29,400 61.710 56,400 145.500 31.200 $294.850 $ 65,000 $40,380 10.725 10.200 48.750 66.000 S124,475 S116,580 Liabilities: Accounts payable Income taxes payable.. Bonds payable...... Total liabilities.. Equity: Common stock Contributed capital in excess of par... Retained earnings... Total equity ............. Total liabilities and equity. 117,000 13.000 73.320 $203.320 $327.795 96.000 9.000 63.270 S168.270 $284.850 Souties and uses and change Ehrens Corporation Income Statement For Year Ended December 31, 2009 Sales........ S240,000 Cost of goods sold... $80,900 Depreciation expense......... 29,400 Other operating expenses..................... 48,000 Interest expense... 2.000 (160,300) Other gains (losses): Loss on sale of equipment... (8.400) Income before taxes.......... 71,300 Income taxes expense ............. 27.650 Net income.................... $_43.650 Additional information: (1) There was no gain or loss on the sales of the long-term investments, nor on the bonds retired. (2) Old equipment with an original cost of $37,550 was sold for $2,100 cash. (3) New equipment was purchased for $67,550 cash. (4) Cash dividends of $33,600 were paid. (5) Additional shares of stock were issued for cash. Prepare a complete statement of cash flows for calendar-year 2009 using the direct method