The following balance sheet and income statement data were taken from the records of Martland Stores for the year ended December 31, 2018:

Prepare the operating section of the statement of cash flows, and present it under both the direct and indirect methods.

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2018 2017 BALANCE SHEET $ 6,000 $ 1,400 Cash Accounts receivable 12,000 13,500 Inventory 4,500 9,800 Prepaid insurance 900 1,200 $23,400 $25,900 Total current assets Equipment (net) 38,000 37,500 Total $63,400 $61,400 2018 2017 BALANCE SHEET Accounts payable $12,600 $13,100 Salaries and wages payable 9,500 7,400 Total current liabilities $22,100 $20,500 Bonds payable (net) 17,000 17,000 Common stock 15,000 15,000 Retained earnings 7,300 10,900 Total $61,400 $63,400 INCOME STATEMENT Sales revenue $96,000 Cost of goods sold 64,000 Gross profit $32,000 Salaries and wages expense (18,600) Insurance expense (9,200) Interest expense (2,100) Depreciation expense (5,700) Net loss $ 3,600