Brentwood Bay Inc.'s comparative balance sheet at September 30, 2017, and its 2017 income statement are shown below:

Other information for the year ended September 30, 2017:
a. Acquired equipment by issuing long-term note payable, $89,200, and paying $16,000 cash.
b. Paid long-term note payable, $122,800.
c. Received $207,600 cash for issuance of common shares.
d. Paid cash dividends, $217,200.
e. Acquired equipment by issuing short-term note payable, $40,000.
Required
1. Prepare Brentwood Bay Inc.'s cash flow statement for the year ended September 30, 2017, using the direct method to report operating activities. Also prepare a note to the financial statements giving a summary of non-cash investing and financing activities. All current accounts, except short-term notes payable, result from operating transactions.
2. Prepare a supplementary schedule showing the cash flows from operating activities using the indirect method.

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BRENTWOOD BAY INC. Balance Sheet September 30, 2017 and 2016 2017 2016 Current assets Accounts receivable Interest receivable Inventories Prepaid expenses $ 194,800 167,600 16,400 486,800 34,400 $ 96,400 164,000 11,200 467,600 37,200 Long-term investments Plant and equipment, net 527,600 188,400 $1,820,400 416,400 297,200 $1,545,200 Current liabilities Notes payable, short-term Accounts payable Income tax payable Accrued liabilities Interest payable Salaries payable $ 40,000 247,200 47,200 71,600 18,000 6,000 492,000 543,600 354,800 $1,820,400 281,200 116,400 12,800 Long-term note payable Common shares Retained earnings 525,600 336,000 BRENTWOOD BAY INC. Income Statement For the Year Ended September 30, 2017 Sales revenue Cost of goods sold Gross margin Operating expenses: $1,468,400 646,000 Amortization 34,000 118,400 Operating income Other revenues and expenses: 416,400 Revenues and gains: 39,200 43,600 Interest Gain on sale of land 499,200 Interest expense Income before income taxes Income tax expense 85,600