The following information was taken from the 2018 financial records of Price Restaurant Supply Company:

The company sold a piece of equipment for cash that had originally cost $100,000. The accumulated depreciation associated with the equipment at the time of sale was $20,000.

REQUIRED:
Prepare a statement of cash flows for the year ended December 31, 2018, using both the direct and indirect methods.

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INCOME STATEMENT $160,000 Sales Cost of goods sold (100,000) Depreciation expense (12,000) Insurance expense (10,000) Interest expense (11,000) Gain on disposal of plant assets 10,000 $ 37,000 Net income BALANCE SHEETS 2018 2017 $173,000 $120,000 Cash 65,000 Accounts receivable 60,000 Inventory 210,000 110,000 24,000 Prepaid insurance 14,000 275,000 Equipment 350,000 Less: Accumulated depreciation (67,000) (75,000) $665,000 $594,000 Total assets $ 51,000 $ 50,000 Accounts payable Bonds payable 200,000 200,000 Premium on bonds payable 3,000 5,000 Common stock ($10 par value) 40,000 75,000 Additional paid-in capital 125,000 95,000 Retained earnings 211,000 204,000 $665,000 $594,000 Total liabilities and shareholders' equity