If someone could help me with this question that would be amazing. I only want the direct method to be used. I REPEAT, I only want the direct method statement. If you could explain how you arrived at your answer that would be extremely helpful as well. Thank you very much. :)

The following financial statement data is available for Riverdale Company for Dec. 31, 2019.

Comparative Balance Sheet Data

2019 2018

1. Cash $39,835 $4,000
2. Accounts Receivable 17,500 12,950
3. Dividends Receivable 1,000 0
4. Inventory 42,000 35,000
5. Prepaid rent 3,000 12,000
6. Prepaid insurance 2,100 900
7. Office supplies 1,000 750
8. Long-term investments 20,000 30,000
9. Land 125,000 175,000
10. Building 350,000 350,000
11. Accumulated depreciation, Building (105,000) (87,500)
12. Equipment 525,000 400,000
13. Accumulated depreciation, Equipment (130,000) (112,000)
14. Patent 45,000 50,000
15. Total assets $ 936,435 $ 871,100

1. Accounts payable $ 26,000 $30,000
2. Income taxes payable 5,000 4,000
3. Wages payable 5,000 3,000
4. Short-term notes payable 10,000 10,000
5. Dividends payable 1,500 0
6. Unearned Income 500 2,000
7. Accrued Liabilities 5,303 10,853
8. Long-term notes payable 60,000 70,000
9. Bonds payable 415,000 415,000
10. Common stock ($10 par) 290,000 220,000
11. Paid-in capital in excess of par 46,410 17,500
12. Retained earnings 106,722 88,747
13. Treasury Stock (35,000) 0
14. Total liabilities and equity $ 936,435 $ 871,100

Income Statement

1. Sales revenue $1,160,000
2. Cost of goods sold (748,000)
3. Gross profit 412,000
4. Operating expenses (276,400)
5. Income from operations 135,600
6. Other revenues/expense:
7. Gain on sale of land 8,000
8. Gain on sale of long-term investment 4,000
9. Dividend revenue 2,400
10. Interest expense (51,750) ( 37,350)
11. Income before taxes 98,250
12. Income tax expense (39,400)
13. Net income 58,850

Instructions:

Make a Comparative Balance Sheet where you compute the dollar change in every account on the Balance Sheet. (YOU CAN MAKE THIS, BUT YOU CAN CHOOSE TO INCLUDE IT IN YOUR ANSWER OR NOT. I ALREADY HAVE THE COMPARATIVE BALANCE SHEET FINISHED. I JUST NEED THE DIRECT METHOD STATEMENT.)

Label each item on the Balance Sheet as being Operating, Investing, or Financing. Don't bother labeling Cash or Retained Earnings because these are affected by all three activities.

For the Operating Section (Direct Method)

You are starting with Sales, adjusting it for cash received from customers, then going directly down the Income Statement and doing the same with each item on the Income Statement.

You will end up with the same answer for Operating Cash Flow as derived using the Indirect Approach.

Be sure to consider all items labeled Operating in your Comparative Balance Sheet.

Other Important Information Affecting Investing and/or Financing Activities

There are no non-cash transactions affecting investing activities.

The only sales of assets are the ones reflected on the income statement.

Make journal entries, including accounting equation impact, for the following transactions:

On April 1, 2019, the company paid $14 per share for Treasury Shares.

On Sept. 1, 2019, the company declared and issued a 5% stock dividend on outstanding shares when the market price of the stock was $17.

All other transactions affecting Contributed Capital and Retained Earnings occurred after Sept. 1, 2019.

There were no prior period adjustments.