Direct Method-Preparing a Statement of Cash Flows Lauder Corp. reported the following financial statements. Balance Sheet December 31 Prior Year Current Year Difference Cash $24,000 $62,000 $38,000 Accounts receivable 19,000 15,000 (4,000) Merchandise inventory 31,000 59,000 28,000 Land 20,000 4,000 (16,000) Equipment 48,000 72,000 24,000 Accumulated depreciation (12,000) (24,000) (12,000) Total assets $130,000 $188,000 $58,000 Accounts payable 16,000 18,000 2,000 Notes payable, long-term 7,000 2,000 (5,000) Bonds payable 0 30,000 30,000 Common stock (no-par) 80,000 92,000 12,000 Retained earnings 27,000 46,000 19,000 Total liabilities and stockholders' equity $130,000 $188,000 $58,000 Income Statement For Year Ended December 31 Current Year Revenues $152,000 Costs of goods sold 82,000 Depreciation 12,000 Other expenses 14,000 Loss on sale of land 10,000 Net income $34,000 Required