What is the answer to

a: prepare a statement of cash flows for year ended Aug.31, 2019 using indirect method(beginning balance sheet acct balances were $0)

b: prepare a statement of cash flows for year ended Aug 31, 2019 using the direct method.

1. No disposal of equipment during year.

2. Dividends of $1,300 were paid in cash during the yr.

3. Prepaid expenses relate to operating expenses.

Income Statement: Aug 31, 2019

Sales Revenue. $185,000

Cost of Goods sold. $106,000

Gross Profit. $79,000

Operating Expenses

Wages. $18,000

Consulting. $11,850

Insurance. $ 1,200

Utilities. $ 2,400

Rent. $14,400

Depreciation. $ 3,250

Total Operating Expense $51,500

Income from operations. $27,900

Interest expense. $900

Income before income tax. $27,000

Income tax expense. $5,400

Net income. $ 21,600

Balance Sheet Aug 31, 2019

Assets:

Cash. $17,400

Accounts receivable. $11,000

Inventory. $ 16,000

Prepaid Insurance. $ 1,000

Total current assets. $45,400

Equipment. $17,500

Accumulate Depreciation $(3,250)

Total Assets. $ 59,650

Liabilities:

Accounts payable. $6,200

Unearned Revenue. $1,250

Other current liabilities. $1,900

Total current liabilities. $9,350

Note payable. $15,000

Total liabilities. $24,350

Stockholders Equity:

Common Stock. $500

Additional paid in capotal. $9,500

Preferred stock. $5,000

Retained Earnings. $20,300

Total stockholders equity. $35,300

Total liabilities and stockholders equity. $59650