11-4B-Cash Flow Statement - Challenging Problem The financial statements of Wilson Inc. are presented below: Wilson Inc. Balance Sheet As at October 31 Cash Accounts receivable Inventory Prepaid insurance Building and equipment Accumulated depreciation Total assets 2024 $821,000 375,000 850,000 30,000 3,512,000 (1.940,000) $3.648.000 2023 $580,000 350,000 880,000 38,000 3,400,000 (1,800,000) $3.448.000 Accounts payable Salaries payable Dividends payable Interest payable Unearned revenues Income taxes payable Bank loan payable Common shares Retained earnings Total liabilities and shareholders' equity $450,000 100,000 65,000 25,000 200,000 40,000 1,400,000 90,000 1.278.000 $3,648.000 $500,000 120,000 50,000 15,000 180,000 25,000 1,100,000 50,000 1,408,000 $3.448.000 Wilson Inc. Income Statement For the Year Ended October 31, 2024 Sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Income taxes Net income $1,500,000 580.000 920,000 680,000 240,000 85,000 155,500 35,000 $120.000 Additional information: 1.) Operating expenses are composed of: Depreciation $200,000; Salaries $420,000; Gain on Sale of Equipment $15,000; other operating expenses $75,000. 2.) Prepaid insurance is related to the other operating expenses. 3.) Equipment was purchased during the year for $200,000 cash. 4.) Equipment was sold for cash during the year. 5.) Dividends were declared and paid during the year. 6.) Unearned revenues are collected from customers. 7.) Paid off $100,000 of bank loan and signed a new loan for additional cash. Required: Prepare a cash flow statement using the direct method or indirect method or both (depending on what your instructor assigns)