PROBLEM 5-4 (CASH FLOWS : DIRECT & INDIRECT METHODS) Raviens Co. is developing its annual financial statements at December 31, 2020. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: Balance Sheet at December 31 2020 Cash $ 59,000 Account Receivable 42,500 Merchandise Inventory 85,300 Property and equipment 88,000 2019 $ 49,000 20,000 60.000 73,000 Accounting Principles 2 (Accounting) - Edition | 23 UPH Less: Accumulated depreciation (19,000) Account Payable Accrued Wages Payable Note payable, long-term Share Capital - Ordinary Retained Earnings 255,800 $ 85,000 15,000 24,500 38,800 92,500 255,800 (9,000) 193,000 $ 60,000 7,000 34,500 27,500 64,000 193,000 Income Statement for 2020 Sales $ 190,000 Cost of good sold 78,000 Other expenses 83,500 Net Income 28,500 C. Additional Information: a. Bought equipment for cash, $15,000. b. Paid $10,000 on the long-term note payable. Issued new shares of stock for $11,300 cash d. No dividends were declared or paid. e. Other expenses included depreciation $10,000, wages $46,000, taxes $5,000, interest $6,500. f. Accounts payable includes only inventory purchases made on credit. Because there are no liability accounts relating to taxes or other expenses, assume that these expenses were fully paid in cash. Instructions Prepare the statement of cash flows for the year ended December 31, 2020, using indirect and direct method