Refer to the information for Rosie-Lee Company below. Additional transactions were as follows:

a. Sold equipment costing $21,600 with accumulated depreciation of $16,200 for $3,600.

b. Issued bonds for $90,000 on December 31.

c. Paid cash dividends of $36,000.

d. Retired mortgage of $108,000 on December 31.

The following balance sheets and income statement were taken from the records of Rosie-Lee Company:

Rosie-Lee Company
Income Statement
For the Year Ended June 30, 2016
Sales..............................................................$ 920,000
Less: Cost of goods sold...............................(620,000)
Gross margin................................................$ 300,000
Less: Operating expenses.............................(177,600)
Net income....................................................$ 122,400

Required:
1. Prepare a schedule of operating cash flows using (a) the indirect method and (b) the direct method.
2. Prepare a statement of cash flows using the indirect method.

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Rosie-Lee Company Comparative Balance Sheets At June 30, 2015 and 2016 2015 2016 Assets Cash Accounts receivable Investments Plant and equipment Accumulated depreciation Land 333.000 144,000 54.000 189.000 (57,600) 54.000 $716.400 $270,000 126,000 180,000 (54,000) 36,000 5558.000 Total assets Liabilities and equity Accounts payable Mortgage payable Bonds payable Preferred stock Common stock Retained earnings S 72,000 108,000 90,000 90,000 36,000 80,000 162,000 S558,000 288,000 248.400 $716.400 Total liabilities and equity