The following balance sheet and income statement data were taken from the records of Harbaugh Auto Supply for the year ended December 31, 1996. 1996 1995 Balance Sheet Cash $ 10,100 $ 8,400 Accounts receivable 14,400 13,900 Inventory 21,600 18,700 Interest receivable 1,200 1,500 Prepaid rent 2,600 1,400 Total current assets $ 49,900 $ 43,900 Investments 35,400 32,100 Equipment (net) 98,000 91,700 Total $183,300 $167,700 Accounts payable $ 18,700 $ 21,300 Wages payable 9,800 11,200 Interest payable 2,300 1,700 Dividend payable 1,700 1,200 Taxes payable 3,100 4,300 Unearned revenue 12,300 15,100 Total current liabilities $ 47,900 $ 54,800 Long-term notes payable (net) 68,300 62,800 Capital stock 42,000 42,000 Retained earnings 25,100 8,100 Total $183,300 $167,700 Income Statement Sales revenues $ 47,500 Service revenue 35,200 Interest revenue 9,300 $ 92,000 Cost of goods sold (21,200) Wage expense (17,600) Rent expense (15,300) Interest expense (6,200) Depreciation expense (11,500) Add: Gain on sale of investments 13,200 Net income before taxes $ 33,400 Tax expense 9,100 Net income $ 24,300 ADDITIONAL INFORMATION: The Company sells goods and provides services. All sales are made on account, and cash is received in advance on services with service revenues being recognized after services are performed. REQUIRED: Prepare the operating section of the statement of cash flows, and present it under both the direct and the indirect methods.