The comparative balance sheets of Franny Franklin Design Studio, Inc., at June 30, 2010 and 2009, and transaction data for fiscal 2010 are as follows:

Transaction data for the year ended June 30, 2010:
a. Net income, $73,400
b. Depreciation expense on equipment, $13,900
c. Purchased long-term investment, $5,000
d. Sold land for $33,800, including $7,000 loss
e. Acquired equipment by issuing long-term note payable, $15,200
f. Paid long-term note payable, $60,700
g. Received cash for issuance of common stock, $21,100
h. Paid cash dividends, $47,800
i. Paid short-term note payable by issuing common stock, $7,000

Requirements
1. Prepare the statement of cash flows of Franny Franklin Design Studio, Inc., for the year ended June 30, 2010, using the indirect method to report operating activities. Also prepare the accompanying schedule of noncash investing and financing activities. All current accounts except short-term notes payable result from operating transactions.
2. Prepare a supplementary schedule showing cash flows from operations by the direct method. The accounting records provide the following: collections from customers, $272,300; interest received, $1,400; payments to suppliers, $130,900; payments to employees, $40,000; payments for income tax, $12,500; and payment of interest,$5,200.

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Franny Franklin Design Studio Comparative Balance Sheets June 30, 2010 2009 (Decrease) Cash Accounts receivable 28,900 2,400 26,500 59,000 22,300 3,700 98,200 40,400 57,800 1,000 5,000 1,300 (40,800) $332,600 $245,100 $87,500) 3,500 2,00 10,000 74,900 73,600 58.100 98,900 Prepaid expense Long-term investment... Equipment, n Land 5,000 Current liabilities: Notes payable, short-term Accounts payable Income tax paya 13,200 $20,200 $ (7,000) 1,000 13,300 14,400 (1,100) 97,400 9,300 88,100 3,500 2,500 1,000 400 3,100 (2,700) 48,700 94,20 (45,500) 79,700 51,600 28,100 8,50025,600 $332,600 $245,100 87,500 42,300 41,300 tes .. Interest payable 34,100