You are given two consecutive balance sheets, an income statement, and a few facts for A Cruel World Inc Balance Sheets (years 0 and 1) Year 1 3,000 4,000 4,000 11,000 Cash Accounts Receivables 3,000 2,000 3,000 Property, Plant and Equipment (net) 12000 20,.000 7,000 5,000 12,000 3,000 5,000 8,000 20000 Total Assets Accounts Payable Bonds Payable 5,000 6,000 11,000 4,000 7,000 11,000 Total Liabilities Common Stock Retained Eamings Total Shareholders' Equity Total Liabilities and Equity Income Statement (year 1) 20,000 Sales Costs of Goods Sold Wage Expense Depreciation Expense Interest Expense Net Income Before Tax Tax Expense Net Income (8,000) (4.000) (2,000) 1,000) 5.000 2,000 Facts All property, plant and equipment that is retired or sold is fully depreciated. Purchases of property, plant and equipment were made in cash. Interest expense increases the Interest Payable Account. Required: a. Construct the Statement of Cash Flows for A Cruel World in year 1 using the direct method. b. Construct the supporting schedule to the Statement of Cash Flows which reconciles net income to cash flow from operations for A Cruel World in year 1. (That is, calculate cash flow from operations using the indirect method.)