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. Statement of cash flows (direct and indirect methods).Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011:2011 2010Cash $ 297,000 $ 153,000Receivables 159,000 117,000Inventory 150,000 180,000Prepaid expenses 18,000 27,000Plant assets 1,260,000 1,050,000Accumulated depreciation (450,000) (375,000)Patent 153,000 174,000$1,587,000 $1,326,000Accounts payable $ 153,000 $ 168,000Accrued liabilities 60,000 42,000Mortgage payable — 450,000Preferred stock 525,000 —Additional paid-in capital—preferred 120,000 —Common stock 600,000 600,000Retained earnings 129,000 66,000$1,587,000 $1,326,0001. The Accumulated Depreciation account has been credited only for the depreciation expense for the period.2. The Retained Earnings account has been charged for dividends of $138,000 and credited for the net income for the year.The income statement for 2011 is as follows:Sales $1,980,000Cost of sales 1,089,000Gross profit 891,000Operating expenses 690,000Net income $ 201,000Instructions(a) From the information above, prepare a statement of cash flows (indirect method) for Hartman, Inc. for the year ended December 31, 2011.(b) From the information above, prepare a schedule of cash provided by operating activities using the direct method.
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