The following balance sheet and income statement data were taken from the records of L. L. Beeno for the year ended December 31, 1996. 1996 1995 Balance Sheet Cash $ 3,000 $ 2,800 Accounts receivable 5,600 4,500 Inventory 7,500 7,800 Prepaid insurance 600 900 Total current assets $16,700 $16,000 Machinery (net) 29,000 26,000 Total $45,700 $42,000 Accounts payable $ 5,600 $ 7,300 Wages payable 4,500 3,400 Total current liabilities $10,100 $10,700 Bonds payable (net) 14,000 14,800 Capital stock 5,000 5,000 Retained earnings 16,600 11,500 Total $45,700 $42,000 Income Statement Revenues $47,000 Cost of goods sold 25,000 Gross profit $22,000 Wage expense (6,200) Insurance expense (4,200) Interest expense (1,600) Depreciation expense (3,300) Net income before taxes $ 6,700 Tax expense 1,200 Net income $ 5,500 REQUIRED: Prepare the operating section ofthe statement of cash flows, and present it under both the direct and the indirect methods