Please use the exact description names when labeling. The wrong answered are highlighted in red. Thanks!

Rosie-Lee Company Comparative Balance Sheets At June 30, 20X1 and 20X2 1 20X1 20X2 2 Assets 3 Cash $270,000.00 $333,000.00 4 Accounts receivable 126,000.00 144,000.00 5 Investments 0.00 54,000.00 6 Plant and equipment 180,000.00 189,000.00 7 Accumulated depreciation (54,000.00) (57,600.00) 8 Land 36,000.00 54,000.00 9 Total assets $558,000.00 $716,400.00 10 Liabilities and equity 11 Accounts payable $72,000.00 $90,000.00 12 Mortgage payable 108,000.00 0.00 13 Bonds payable 0.00 90,000.00 14 Preferred stock 36,000.00 15 Common stock 180,000.00 288,000.00 16 Retained earnings 162,000.00 248,400.00 17 Total liabilities and equity $558,000.00 $716,400.00 Rosie-Lee Company Income Statement For the Year Ended June 30, 20X2 1 Sales $920,000.00 2 Cost of goods sold (620,000.00) 3 Gross margin $300,000.00 4 Operating expenses (177,600.00) $122,400.00 5 Net income Additional transactions were as follows: A. Sold equipment costing $21,600, with accumulated depreciation of $16,200, for $3,600. B. Issued bonds for $90,000 on December 31. C. Paid cash dividends of $36,000. D. Retired mortgage of $108,000 on December 31. Required: 1(a). Prepare a schedule of operating cash flows using the indirect method. 1(b). Prepare a schedule of operating cash flows using the direct method. 2. Prepare a statement of cash flows using the indirect method. Refer to the list below for the exact wording of an amount description within your Statement of Cash Flows. Amount Descriptions Cost of goods sold Decrease in accounts payable Decrease in accounts receivable Depreciation expense Gain on sale of equipment Increase in accounts payable Increase in accounts receivable Issuance of bonds Issuance of common stock Loss on sale of equipment Net cash from financing activities Net cash from investing activities Net cash from operating activities Net decrease in cash Net income Net increase in cash Operating expenses Payment of dividends Purchase of equipment Purchase of investments Purchase of land Retirement of mortgage Retirement of preferred stock Revenues Sale of equipment Operating Cash Flows - Indirect Method 1(a). Prepare a schedule of operating cash flows using the indirect method. (Note: Use a minus sign to indicate any decreases in cash or cash outflows. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Rosie-Lee Company Score: 59/59 Schedule of Operating Cash Flows Using the Indirect Method 1 Cash flows from operating activities: 2 Net income $122,400.00 3 Add (deduct) adjusting items: 4 Depreciation expense 19,800.00 5 Loss on sale of equipment 1,800.00 6 Increase in accounts receivable (18,000.00) 7 Increase in accounts payable 18,000.00 8 Net cash from operating activities $144,000.00 Operating Cash Flows - Direct Method 1(b). Prepare a schedule of operating cash flows using the direct method. (Note: Begin by entering the applicable income statement amounts as presented above. In the Adjustments column, if an account has more than one adjustment, enter the total effect of all adjustments in the applicable cell. Use a minus sign to indicate a negative adjustment or a negative cash outflow. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.) Rosie-Lee Company Score: 41/63 Schedule of Operating Cash Flows Using the Direct Method Income 1 Adjustments Cash Flows Statement 2 Revenues $920,000.00 $(18,000.00) $902,000.00 3 Payment of dividends 18,000.00 620,000.00 (602,000.00) (156,000.00) 4 Operating expenses 21,600.00 (177,600.00) 5 Net cash from operating activities $144,000.00