Use the following financial statements and additional information.

Additional Information

1. A $38,000 note payable is retired at its $38,000 carrying (book) value in exchange for cash.
2. The only changes affecting retained earnings are net income and cash dividends paid.
3. New equipment is acquired for $95,000 cash.
4. Received cash for the sale of equipment that had cost $79,000, yielding a $9,200 gain.
5. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
6. All purchases and sales of inventory are on credit

No	Date	Account Title	Debit	Credit
1	Jun 30	Cash	1,129,000
		Accounts receivable, net	17,000
		Sales		1,146,000
2	Jun 30	Cost of goods sold	701,000
		Accounts payable	6,000
		Inventory		26,000
		Cash		681,000
3	Jun 30	Depreciation expense	97,000
		Accumulated depreciation - Equipment		97,000
4	Jun 30	Other expenses	113,000
		Wages payable	10,000
		Prepaid expenses		1,600
		Cash		121,400
5	Jun 30	Cash	27,200
		Accumulated depreciation - Equipment	61,000
		Equipment		79,000
		Gain on sale of equipment		9,200
6	Jun 30	Income taxes expense	74,750
		Income taxes payable	400
		Cash		75,150
7	Jun 30	Notes payable (long-term)	38,000
		Cash		38,000
8	Jun 30	Equipment	95,000
		Cash		95,000
9	Jun 30	Cash	80,000
		Common stock, $5 par value		80,000
10	Jun 30	Sales	1,146,000
		Gain on sale of equipment	9,200
		Income summary		1,155,200
11	Jun 30	Income summary	985,750
		Cost of goods sold		701,000
		Depreciation expense		97,000
		Other expenses		113,000
		Income taxes expense		74,750
12	Jun 30	Income summary	169,450
		Retained earnings		169,450
13	Jun 30	Retained earnings	158,050
		Cash		158,050

• Requirement Direct method

• LAUDERDALE INC.
  Statement of Cash Flows (Direct Method)
  For Year Ended June 30, 2019
  Cash flows from operating activities:
  Cash received from customers
  Cash paid for merchandise
  Cash paid for operating expenses
  Cash paid for income taxes
  Net cash provided by operating activities
  Cash flows from investing activities:
  Cash flows from financing activities:

• Indirect method

• LAUDERDALE INC.
  Statement of Cash Flows (Indirect Method)
  For Year Ended June 30, 2019
  Cash flows from operating activities:
  Adjustments to reconcile net income to net cash provided by operating activities: