Use the following financial statements and additional information.

VANCOUVER INC. Comparative Balance Sheets June 30, 2019 and 2018
	2019				2018
Assets
Cash	$	74,000			$	29,300
Accounts receivable, net		78,000				61,000
Inventory		66,000				92,000
Prepaid expenses		5,500				6,900
Total current assets		223,500				189,200
Equipment		173,000				160,000
Accum. depreciationEquipment		(42,000	)			(14,000	)
Total assets	$	354,500			$	335,200
Liabilities and Equity
Accounts payable	$	30,000			$	36,000
Wages payable		8,000				20,000
Income taxes payable		4,700				5,200
Total current liabilities		42,700				61,200
Notes payable (long term)		38,000				75,000
Total liabilities		80,700				136,200
Equity
Common stock, $5 par value		220,000				160,000
Retained earnings		53,800				39,000
Total liabilities and equity	$	354,500			$	335,200

VANCOUVER INC. Income Statement For Year Ended June 30, 2019
Sales				$	904,000
Cost of goods sold					553,000
Gross profit					351,000
Operating expenses
Depreciation expense	$	74,000
Other expenses		89,000
Total operating expenses					163,000
					188,000
Other gains (losses)
Gain on sale of equipment					4,600
Income before taxes					192,600
Income taxes expense					58,950
Net income				$	133,650

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 $73,000 cash.
4. Received cash for the sale of equipment that had cost $60,000, yielding a $4,600 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.

direct method

VANCOUVER INC.
Statement of Cash Flows (Direct Method)
For Year Ended June 30, 2019
Cash flows from operating activities:
Cash received from customersselected answer correct	$887,000selected answer correct
Cash paid for merchandiseselected answer correct	(533,000)selected answer correct
Cash paid for operating expensesselected answer correct	(99,600)selected answer correct
Cash paid for income taxesselected answer correct	(59,450)selected answer correct
not attempted	not attempted
Net cash provided by operating activitiesselected answer correct		$194,950
Cash flows from investing activities:
Cash received from sale of equipmentselected answer correct	18,600selected answer correct
Cash paid for equipmentselected answer correct	(73,000)selected answer correct
not attempted	not attempted
not attempted	not attempted
Net cash used by investing activitiesselected answer correct		(54,400)
Cash flows from financing activities:
Cash received from stock issuanceselected answer correct	60,000selected answer correct
Cash paid to retire notesselected answer correct	1,000selected answer incorrect
Cash paid to retire notesselected answer incorrect	(38,000)selected answer incorrect
Cash paid for dividendsselected answer correct	(118,850)selected answer correct
not attempted		(95,850)
Net increase in cash		$44,700
Cash balance at prior year-end		not attempted

indirect method

VANCOUVER INC.
Statement of Cash Flows (Indirect Method)
For Year Ended June 30, 2019
Cash flows from operating activities:
Net incomeselected answer correct		$133,650selected answer correct
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expenseselected answer correct	$7,400selected answer incorrect
Gain on sale of equipmentselected answer correct	(4,600)selected answer correct
Cash paid for income taxesselected answer incorrect	58,950selected answer incorrect
Cash paid for operating expensesselected answer incorrect	58,450selected answer incorrect
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
not attempted	not attempted
		120,200
not attempted		$253,850
Net cash provided by operating activities, using the direct method:		$194,950