XYZ Inc. Income Statement For Year Ended December 31, 2014 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Operating Income Other Revenues and Gains: Gain on Sale of Equipment Other Expenses and Losses: Interest Expense Income Before Income Tax Income Tax Expense Net Income Additional information: $338,150 175,000+ $163,150 120,000 $ 43,150 2,000 11,400- $ 33,750 6,750 $ 27,000 1. Depreciation expense and amortization expense are included in operating expenses. 2. No unrealized gains or losses have occurred on the investments during the year. 3. Equipment that had a cost of $20,000 and was 70% depreciated was sold during 2014. Instructions: a. Prepare a Statement of Cash Flows using the direct method. b. Prepare the Operating Activities for a Statement of Cash Flows using the indirect method. Use the answer book for your answer. Do NOT place answer on this page. 3