The accounting records of Laurent Company provided the following data:

Other information:
a. Paid a $ 24,000 long- term note payable by issuing common shares.
b. Purchased capital assets that cost $ 99,000; gave a $ 72,000 long- term note payable and paid $ 27,000 cash.
c. Sold the long- term investment at cost, for cash.
d. Assume that unexplained differences in asset, liability, and equity accounts flow from logical sources.

Required:
1. Prepare the SCF, using the two- step indirect method of presentation for the operating activities section. Omit separate disclosure of cash paid for interest and income tax. Include a list of non- cash transactions that would be presented in the disclosure notes.
2. Prepare the operating activities section of the SCF using the directmethod.

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Statement of Comprehensive Income For year ended 31 December 20x8 Sales Cost of goods sold Depreciation expense Operating expenses Net earnings and comprehensive income $900,000 (540,000) (12,000) (192,000 $156,000 Statement of Financial Position At 31 December 20X8 20x7 Debits Cash Accounts receivable Inventory Investment, long term Capital assets Total debits $102,000$ 54,000 75,000 57,000 60,000 9,000 180,000 $510,000 $306,000 279,000 Credits Bank overdraft Accumulated depreciation Accounts payable Short-term bank loan Notes payable, long term Common shares Retained earnings Total credits $15,000 30,000 18,000 9,000 60,000 240,000 150,000 24,000 $510,000 $306,000 42,000 36,000 12,000 108,000 72,000