On January 1, 2011, Warr Delivery Company purchased some equipment for $64,768 in cash. Warr Delivery immediately leased the equipment; Warr Delivery is the lessor. The lease contract calls for the receipt of $14,000 payments at the end of each year for five years. The residual value of the equipment at the end of the 5-year lease term is expected to be $15,868. The rate implicit in the lease is 9%. Except for leaserelated items, there were no changes in current operating assets or liabilities during the year; no purchases or sales of property, plant, or equipment; and no dividends paid, stock issued, or loans obtained or repaid. The equipment has a total useful life of eight years with no salvage value. Prepare a complete statement of cash flows for Warr Delivery for 2011 using the indirect method of reporting operating cash flow assuming that the lease is accounted for as

(1) An operating lease (net income was $70,000),

(2) A direct financing lease (net income was $69,925), and

(3) A sales-type lease (net income was $69,925; for comparability, make the unreasonable assumption that sales and cost of good sold are the same amount).