Using the forms provided, prepare a statement of cash flows using the Indirect Method. Also prepare a statement of cash flows using the Direct Method.

The comparative balance sheet of Livers, Inc. for December 31, 20X3 and 20X2 is shown below: Dec. 31, 20X3 Dec. 31, 20X2 Assets Cash $155,000 $150,000 Accounts receivable, net 450,000 400,000 Inventories 770,000 750,000 Investments 0 100,000 Land 500,000 0 Equipment 1,400,000 1,200,000 Accumulated depreciation - equipment (600,000) (500,000) Total Assets $2,675,000 $2,100,000 Liabilities & Stockholders' Equity Accounts payable (merchandise creditors) $340,000 $300,000 Accrued expenses payable (operating expenses) 45,000 50,000 Income tax payable 30,000 25,000 Common stock, $4 par 700,000 600,000 Paid-in capital in excess of par- common stock 200,000 175,000 Retained earnings 1,360,000 950,000 Total Liabilities & Stockholders' Equity $2,675,000 $2,100,000 The income statement of Livers, Inc. for December 31, 20X3 is shown below: Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Other operating expenses Total operating expenses Operating income Other income: Gain on sale of investments Income before income tax Income tax expense Net Income Dec. 31, 20X3 $3,000,000 1,400,000 $1,600,000 $100,000 950,000 Additional data for the year: All sales are on account and all purchases of inventory are on account. The investments were sold for $175,000 cash. Equipment and land were acquired for cash. There were no disposals of equipment during the year. The common stock was issued for cash. The only changes to retained earnings was net income and dividends. 1,050,000 $550,000 75,000 $625,000 125,000 $500,000 Using the forms provided, prepare a statement of cash flows using the Indirect Method. Also prepare a statement of cash flows using the Direct Method.