Question: The company has bonds outstanding with a face value of $50,000 and an unamortized premium of $2,350 at the beginning of the year and $2,000

The company has bonds outstanding with a of $50,000 and an unamortized premium of $2,350 at the beginning of the year and $2,000 as of the end of the year. Sales (all for cash) were $42,000 for the year. Total interest expense of $4,650 was reported for the year. Because interest expense is the only expense for this company, net income for the year was $37,350 ($42,000 - $4,650). Prepare the Operating Activities section of the cash flow statement using both
(1) The direct method and
(2) The indirect method.

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