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.
Information for Rosie-Lee Company

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, 2011 and 2012 2011 2012 Cash Accounts receivable Investments Plant and equi Accumulated depreciation $270,000$333,000 44,000 54,000 189,000 (57,600 54,000 558,000 $716400 126,000 180,000 54,000) 36,000 Total assets Liabilities and equity Accounts payable Mortgage payable Bonds payable Preferred stock Common stock Retained eamings 72,000 90,000 108,000 90,000 36,000 180,000 162,000 $558,000 288,000 248,400 $716,400 Total liabilities and equity Rosie-Lee Company Income Statement For the Year Ended June 30, 2012 Sales Less: Cost of goods sold 920,000 20,00 300,000 177,600 Gross margin Less: Operating expenses Net income