Question

Jafan Retailing, Balance Sheet Statement December 31, 2016 & December 31, 2017
	2016		2017
Cash	$    235,000		$    400,000
Accounts Receivable	367,200		325,000
Inventory	450,000		500,200
Prepaid Expenses	120,000		160,000
Long-term investment	100,000		300,000
Equiptment (Net)	1,050,000		1,125,000
Total Assets	$ 2,322,200		$ 2,810,200
Accounts Payable	$    421,000		$    411,000
Salary Payable	134,000		180,000
Interest Payable	110,000		112,000
Bonds Payable	550,000		560,000
Common Shares	650,000		990,000
Retained Earnings	457,200		557,200
Total Equity and Liabilities	$ 2,322,200		$ 2,810,200
Ibrahim Retailing, Income Statement for the Year Ended Dec 31, 2017
			2017
Sales	$ 1,450,000
Cost of Goods Sold	920,000
Total Revenue			530,000
Salaries Expenses	150,000
Interest Expenses	120,000
Depreciation Expenses	60,000
Tax Expenses	80,000
Total Expenses			410,000
Net Income			$   120,000
In addition:
1) Equiptment costing $85,000 was purchased and the company paid for it by issuing 5,000 shares at $10 each, and the remainder was paid in cash.
2) The company declared and paid out cash dividends at the end of 2017.

Prepare statement of Cash flow direct method

Answer 1

this problem cannot be soved using direct method hasto be solved by in direct method.i have solved using indirect method if you stillwant by direct method let me know in comments section.