MILESTONE II: Statement of Cash Flows, Operating Activities Section, Direct and Indirect Methods. [Learning Objectives A]DELIVERABLESA. Easthoff, Incorporated provided the following balance sheets and income statement for the current year. Prepare the operating activities section of the cash flow statement using the direct method. Accrued expenses relate to Selling, General, and Administrative Expenses.B. Easthoff, Incorporated provided the following balance sheets and income statement for the current year. Prepare the operating activities section of the cash flow statement using the indirect method. Accrued expenses relate to Selling, General, and Administrative Expenses.Easthoff, Incorporated Balance Sheet At December 31See Next Page\table[[Assets,Ending,Beginning],[Current Assets],[Cash,$ 7,000,$ 3,500],[Accounts Receivable,8,500,8,000],[Merchandise Inventory,2,300,4,000],[Prepaid Expenses,1,700,2,200],[Total Current Assets,$ 19,500,$ 17,700],[Noncurrent Assets],[Investments,$ 12,000,$ 24,300],[Property, Plant, and Equipment-net,75,000,58,000],[Total Noncurrent Assets,$ 87,000,$ 82,300],[Total Assets,$106,500,$100,000],[Liabilities],[Current Liabilities],[Accounts Payable,$ 4,500,$ 1,000],[Accrued Expenses,9,800,5,120],[Income Taxes Payable,6,000,4,850],[Total Current Liabilities,$ 20,300,$ 10,970],[Noncurrent Liabilities],[Notes Payable,$ 31,000,$ 42,630],[Total Noncurrent Liabilities,31,000,42,630],[Total Liabilities,$ 51,300,$ 53,600],[Stockholders' Equity],[Common Stock, $1 par value,$ 10,000,$ 9,000],[Additional Paid-In Capital,24,700,20,000],[Retained Earnings,20,500,17,400],[Total Stockholders' Equity,$ 55,200,$ 46,400],[Total Liabilities and Stockholders' Equity,$106,500,$100,000]]