Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011:

 

	2011	2010
Cash	297000	153000
Receivables	159000	117000
Inventory	150000	180000
Prepaid expenses	18000	27000
Plant assets	1260000	1050000
Accumulated depreciation	-450000	-375000
Patent	153000	174000
	1587000	1326000
Accounts payable	153000	168000
Accrued liabilities	60000	42000
Mortgage payable	—	450000
Preferred stock	525000	—
Additional paid-in capital—preferred	120000	—
Common stock	600000	600000
Retained earnings	129000	66000
	1587000	1326000

1. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.

2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.

The income statement for 2011 is as follows:

Sales ................ $1,980,000.00

Cost of sales ............... $1,089,000.00

Gross profit ............. $891,000.00

Operating expenses ............. $690,000.00

Net income .............. $201,000.00

Instructions

(a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2011.

(b) From the information above, prepare a schedule of cash provided by operating activities using the directmethod.