Available financial information for Blue Bomber Company is as follows:

The following additional information is available:
a. Cash dividends of $45,000 were declared and paid during the year.
b. Equipment was purchased for cash.
c. A portion of bonds payable matured and was paid with cash.
d. Common stock was issued for cash.
Required
Prepare a complete statement of cash flows for Blue Bomber for 2012 using the direct method for the operating activities section. In a separate schedule, show the operating activities section using the indirect method.

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Comparative Balance Sheets at 12/31 2012 2011 75,000 S 45,000 Cash and cash equivalents Accounts receivable Inventory Prepaid insurance 45,000 55,000 200,000 75,000 30,000 35,000 350,000310,000 800,000 720,000 (240,000) (170,000) 560,000 550,000 $910,000 $860,000 Total current assets Equipment Accumulated depreciation Total equipment Total assets Accounts payable Accrued salaries S110,000 $115,000 10,00035,000 20,000 150,000 180,000 230,000 300,000 380,000 50,000 250,000 260,000 230,000 610,000 480,000 Total current liabilities Bonds payable Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 910,000 $860,000 Income Statement For the Year Ending 12/31/12 Sales $450,000 225,000 225,000 70,000 30,000 $125,000 20,000 S105,000 30,000 75,000 Cost of goods sold Gross profit Depreciation expense Other operating expenses Income before interest and taxes Interest expense Income before taxes Income tax expense Net Income