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P17.9A (LO 2, 3) AP Condensed financial data follow for E-Perform Ltd. E-Perform reports under ASPE. Prepare cash flow statements-indirect method and direct method. Assets Cash Accounts receivable Inventory Prepaid expenses Long-term investments Property, plant, and equipment Accumulated depreciation Total assets .. Liabilities and Shareholders' Equity Accounts payable Accrued expenses payable Notes payable Common shares Retained earnings Total liabilities and shareholders' equity $682,500 E-PERFORM LTD. Income Statement Year Ended December 31, 2021 Sales Cost of goods sold Gross profit Operating expenses Depreciation expense $62,410 46,500 Loss on sale of equipment 7,500 Profit from operations Other expenses Interest expense Profit before income tax Income tax expense Profit E-PERFORM LTD. Balance Sheet December 31 2021 $ 97,800 75,800 122,500 38,400 128,000 270,000 (50,000) 2020 48,400 43,000 92,850 26,000 114,000 242,500 (52,000) $ $682,500 $514.750 $ 93,000 $ 77,300 11,500 7,000 110,000 150,000 234,000 175,000 234,000 105,450 $514.750 $492,780 185,460 307,320 116,410 190,910 4.730 186,180 45,000 $141,180 Additional information: 1. New equipment costing $85,000 was purchased for $25,000 cash and a $60,000 note payable. 2. Equipment with an original cost of $57,500 was sold at a loss of $7,500. 3. Notes payable matured during the year and were repaid. 4. A long-term investment was acquired for cash. Instructions a. Prepare a cash flow statement for the year using the indirect method. b. Prepare the operating section of the cash flow statement using the direct method assuming that accounts payable relate only to merchandise creditors and that accrued expenses payable and prepaid expenses relate to operating expenses