Preparing the operating section of the statement of cash flows

Preparing the operating section of the statement of cash flows: Direct and indirect methodsThe following balance sheet and income statement data were taken from the records of L. L. Beeno for the year ended December 31, 2012:20122011BALANCE SHEETCash$3,000$2,800Accounts receivable5,6004,500Inventory7,5007,800Prepaid insurance600900Total current assets$16,700$16,000Machinery (net)29,00026,000Total$45,700$42,000Accounts payable$5,600$7,300Wages payable4,5003,400Total current liabilities$10,100$10,700Bonds payable (net)14,00014,800Capital stock5,0005.000Retained earnings16,60011,500Total$45,700$42,000INCOME STATEMENTRevenues$47,000Cost of goods sold25,000Gross profit$22,000Wage expense6,200Insurance expense(4,200)Interest expense1,600Depreciation expense3,300Net income before taxes$6,700Tax expense1,200Net income$ 5,500Prepare the operating section of the statement of cash flows, and present it under both the direct and indirect methods.