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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:

9. Statement of cash flows (direct and indirect methods).
Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011:

2011 2010
Cash \$ 297,000 \$ 153,000
Receivables 159,000 117,000
Inventory 150,000 180,000
Prepaid expenses 18,000 27,000
Plant assets 1,260,000 1,050,000
Accumulated depreciation (450,000) (375,000)
Patent 153,000 174,000
\$1,587,000 \$1,326,000

Accounts payable \$ 153,000 \$ 168,000
Accrued liabilities 60,000 42,000
Mortgage payable — 450,000
Preferred stock 525,000 —
Additional paid-in capital—preferred 120,000 —
Common stock 600,000 600,000
Retained earnings 129,000 66,000
\$1,587,000 \$1,326,000

1. 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 \$1,980,000
Cost of sales 1,089,000
Gross profit 891,000
Operating expenses 690,000
Net income \$ 201,000

Instructions
(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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Question:Statement of cash flows (direct and indirect methods).
Hartman, Inc. has prepared the following comparative balance sheets for 2010 and 2011:
2011
\$297,000
\$159,000
\$150,000
\$18,000...

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