Prepare statement of cash flows using the indirect method and the operating section only using the direct method

QUESTION 2 A firm's s recent comparative balance sheets and income statements follow alance sheets, December 31 29,500 7,000 Accounts receivable Capital assets Accumulated depreciation Total assets 2,000 123,500 $96,000 bilities and shareholders' equit ds payable Dividends payable Common shares Additional paid-in capital 24,500 23,000 11,000 1,500 500 500 etained earnings otal liabilities and stockholders Income statement for year ended December 31, 2011 Sales revenue Cost of goods sold Gross margin 77,500 53,500) 24,000 in on sale of equipment et income 14,000 Additional information: 1. During 2011, equipment costing $20,000 was sold for cash. 2. During 2011, $10,000 of bonds payable were issued in exchange for capital assets. 3. There was no amortization of bond discount or premium. Required: Prepare the 2011 Statement of Cash Flows using the indirect method and the operating section only using the direct method