Help!!!!

5 Exercise 14A-2 Net Cash Provided by Operating Activities (L014-4] 3 points Wiley Company's income statement for Year 2 follows: Skipped Sales Cost of goods sold Gross margin Selling and administrative expenses Income before taxes Income taxes Net Income $ 2.300 1,000 1,300 400 900 360 $ 540 eBook Hint The company's selling and administrative expense for Year 2 includes $80 of depreciation expense. Selected balance sheet accounts for Wiley at the end of Years 1 and 2 are as follows: Year 2 Year 1 Print $200 5170 $42 $250 $182 $ 2e References Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts payable Accrued liabilities Income taxes payable $122 $ 12 $120 $32 $ 22 $75 Required: 1. Using the direct method, convert the company's income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $14,000 gain on sale of investments and a $4.000 loss on the sale of equipment. Would these transactions affect the computation in (1) above? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that during Year 2 Wiley had a $14,000 gain on sale of investments and a $4,000 loss on the sale of equipment Would these transactions affect the computation in (1) above. Next > Ch. 14: Guided Examples Saved VU LEUWE UIT 5 Year 2 Year 1 $200 $170 $ 42 5250 $182 $20 3 points Current Assets Accounts receivable Inventory Prepaid expenses Current Liabilities Accounts payable Accrued liabilities Income taxes payable Skipped $122 $ 12 $120 $ 83 $ 22 $75 eBook Required: 1. Using the direct method, convert the company's income statement to a cash basis. 2. Assume that during Year 2 Wiley had a $14,000 gain on sale of investments and a $4.000 loss on the sale of equipment. Would these transactions affect the computation in (1) above? Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 0 References Assume that during Year 2 Wiley had a $14,000 gain on sale of investments and a $4,000 loss on the sale of equipment. Would these transactions affect the computation in (1) above. ONo, gains and losses on income statement are ignored under direct method No, gains and losses on income statement are considered under direct method Yes, gains and losses on income statement are ignored under direct method Yes, gains and losses on income statement are considered under direct method.