The comparative balance sheets of Lesley Leary Design Studio, Inc., at June 30, 2012 and 2011, and transaction data for fiscal 2012, are as follows:

Transaction data for the year ended June 30, 2012, follows:
a. Net income, $60,500
b. Depreciation expense on equipment, $13,900
c. Purchased long-term investment, $4,800
d. Sold land for $50,400, including $6,400 loss
e. Acquired equipment by issuing long-term note payable, $15,000
f. Paid long-term note payable, $60,700
g. Received cash for issuance of common stock, $8,200
h. Paid cash dividends, $38,100
i. Paid short-term note payable by issuing common stock, $5,400

Requirements
1. Prepare the statement of cash flows of Lesley Leary Design Studio, Inc., for the year ended June 30, 2012, using the indirect method to report operating activities. Also prepare the accompanying schedule of non-cash investing and financing activities. All current accounts except Notes payable, short-term, result from operating transactions.
2. Prepare a supplementary schedule showing cash flows from operations by the direct method. The accounting records provide the following: collections from customers, $232,600; interest received, $1,600; payments to suppliers, $130,300; payments to employees, $29,500; payments for income tax, $13,500; and payment of interest,$5,800.

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Lesley Leary Design Studio Comparative Balance Sheets June 30, Increase 2012 2011 (Decrease) Current assets Cash Accounts receivable Inventories Prepaid expenses 28,600S 18,500 10,100 31,70016,300 50,200 18,500 (800) 4,800 1,100 48,000 68,700 Long-term investment Equipment, net Land 1900 2,700 10,000 74,700 73,600 33,100 5,200 89,900 (56,800) $265,000 $271,800 (6,800) Current liabilities: 13,800$19,200 (5,400) (1,400) Notes payable, short-term Accounts payable Income tax payable Accrued liabilities Interest payable Salary payable 39,500 40,900 3,500 15000 (1,500) 9,600 11,100 500 400) 20,700 3,300 2,800 Long-term note payable Common stock Retained earnings 4,500 38,400 65,400 65,900 4,900 84,100 (45,700) 51,80013,600 43,500 22,400 $265,000 $271,800 (6,800)