Please give a complete answer and do not reference other postings, as those answers are incorrect. Thank you very much!!

Please give a complete answer and do not reference other postings, as those answers are incorrect. Thank you very much!!

The Sheffer Company's statement of cash flows for 2019 showed the following calculation of the cash flow from operating activities: Collections from customers $ 2,245 Payments to suppliers (1,375) Payments to employees ( 688) Payments to the IRS (for income tax) ( 72) Cash flow from operating activities $ 110 The company's balance sheet at the beginning and end of 2019 showed the following: 262 122 Beginning End of year of year Accounts payable $ 92 $ 103 Accounts receivable 218 Accumulated depreciation 93 Income tax payable 142 180 Merchandise inventory 141 189 Plant and equipment (at cost) 371 Wages payable 36 A note to the financial statements showed that the company bought plant and equipment during the year for $33. Assume that all sales and inventory purchases during the year were made on credit. 338 37 Required: a. Prepare an income statement for the Sheffer Company for 2019. b. Did the Sheffer Company use the direct or the indirect method in preparing its statement of cash flows