Use the following financial statements and additional information. UPPERCHURCH INCORPORATED Comparative Balance Sheets June 30, 2019 and 2018 Assets Cash Accounts receivable, net Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Wages payable Income taxes payable Total current liabilities Notes payable (long term) Total liabilities Equity Common stock, $5 par value Retained earnings Total liabilities and equity UPPERCHURCH INCORPORATED Income Statement For Year Ended June 30, 2019 Sales Cost of goods sold 2019 2018 $ 113,400 76,000 $ 59,200 59,000 65,000 90,000 5,000 6,200 214,400 $ 370,400 259,400 150,000 (39,000) $ 28,000 7,000 139,000 (13,000) $ 340,400 $ 34,000. 18,000 5,400 57,400 4,900 39,900 35,000 70,000 74,900 127,400 250,000 45,500 180,000 33,000 $ 370,400 $ 340,400 $ 787,000 481,000 306,000 Gross profit Operating expenses Depreciation expense Other expenses Total operating expenses Other gains (losses) Gain on sale of equipment Income before taxes Income taxes expense. Net income $ 67,000 75,000 $ 142,000 164,000 3,100. 167,100 51,150 $ 115,950 General Requirement Journal General Ledger Trial Balance Direct Method Indirect Method Prepare the Statement of Cash flows for the year ended June 30, 2019 using the Direct Method. Hint Use the account on the General Ledger tab to identify the sources and uses of cash. List cash outflows as negat values. Post-closing UPPERCHURCH INCORPORATED 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 received from sale of equipment Cash paid for equipment + Net cash used by investing activities Cash flows from financing activities: Cash received from stock issuance Cash paid to retire notes Cash paid for dividends Net cash used by financing activities Post-closing Cash flows from operating activities: Net income UPPERCHURCH INCORPORATED Statement of Cash Flows (Indirect Method) For Year Ended June 30, 2019 Adjustments to reconcile net income to net cash provided by operating activities: Income statement items not affecting cash Depreciation expense Gain on sale of equipment Changes in current operating assets and liabilities Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Decrease in wages payable Decrease in income taxes payable Net cash provided by operating activities