The following is the financial information for TinTing School Supplies, Ltd.:

Additional information:
1. Store equipment was purchased by signing a two-year long-term note payable.
2. Additional bank loan was borrowed as a partial payment for the purchase of delivery trucks.
3. TinTing declared and paid dividends on December 28, 2014.
4. TinTing€™s net income was $11,820.
Requirements
1. Identify source and use of cash for each account in the Balance Sheet.
2. Prepare a cash flow statement, using the indirect method.
3. Prepare the cash flow from operating activities section by using the direct method.

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TinTing School Supplies, Ltd Balance Sheet As of December 31 SOURCE/ 2014 2013 (USES) Current Assets: Cash Accounts Receivable Packaging Supplies Prepaid Insurance Inventory Total Current Assets $ 3,600 6,500 23,600 21,400 1,600 1,400 2.340 12,100 10400 42,000 42,240 1,300 Capital Assets Store Equipment Accumulated Depreciation, Store Equipment Delivery Trucks Accumulated Depreciation, Delivery Trucks Total Capital Assets 27,000 18,200 5.400) (3,640) 168,000 116,500 (33,600) (23300) 156,000107,760 $198,000$150,000 Total Assets Current Liabilities Accounts Payable Income Tax Payable Total Current Liabilities $23,700 14,200 3,500 7,700 4,030 27,730 Long-term Liabilities Long-Term Note Payable Bank Loan Total Long-Term Liabilities 36,250 31,000 71,300 45,300 107,550 76,300 Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity 35,00035,000 27.720 21,000 62,720 56,000 $198,000 $150,000 Total Liabilities & Shareholders' Equity TinTing School Supplies, Ltd. Income Statement For the Year Ended December 31, 2014 Revenues Cost of Goods Sold Gross Profit Operating Expenses $125,000 50,000 75,000 $12,060 35,000 8,240 Depreciation Expense Wages Expense Other Expenses Total Operating Expenses Income Before Taxes Income Taxes (40%) Net Income 55,300 19,700 7,880 S 11,820