Donellys, Inc. has prepared the following comparative balancesheets for 2007 and 2008: 2008 2007 Cash $ 297,000 $ 153,000Receivables 159,000 107,000 Inventory 150,000 180,000 Prepaidexpenses 18,000 27,000 Plant assets 1,260,000 1,050,000 Accumulateddepreciation (450,000) (375,000) Patent, net (intangible asset)153,000 174,000 $1,587,000 $1,316,000 Accounts payable $ 153,000 $168,000 Accrued liabilities 60,000 42,000 Bonds payable 0 450,000Preferred stock 645,000 0 Common stock 600,000 600,000 Retainedearnings 129,000 56,000 $1,587,000 $1,316,000 1. The AccumulatedDepreciation account has been credited only for the depreciationexpense for the period. That is, there was no plant asset soldduring 2008. 2. During 2008, new plant assets were purchased for$210,000. 3. No Patent was purchased or sold during 2008. For 2008Year Net income $211,000 Net sales 1,980,000 COGS 1,089,000Depreciation expense 75,000 Amortization of patents 21,000 Cashdividends declared and paid 138,000 Required: 1. Prepare aStatement of Cash Flows for Donellys, Inc. for the year 2008. (Usethe indirect method.) 2. From the information provided, calculatethe following items for the direct method. A. Cash received fromcustomers. (Hint: Work on A/R account.) B. Cash paid to suppliers.(Hint: Work on Inventory and A/P accounts.)