Condensed financial information for Entity A is presented below. In addition: 1. Accounts payable pertain to merchandise creditors. 2. New plant assets costing $100,000 cash were purchased during the year. 3. Old plant assets costing 57, 500 with accumulated depreciation of 48, 500 were sold for 1, 500 cash during the year. 4. Some of the bonds payable matured and were redeemed at face. 5. A cash dividend of 26, 030 was declared and paid during the year. 1. Prepare a statement of cash flows using the direct method. 2. Prepare a reconciliation statement. 3. Which method do you prefer for preparing the operating activities section? Why