Hartman, Inc. has prepared the following comparative balancesheets for 2017 and 2018:
                                                                                                          2018                      2017     Â
         Cash                                                                                    $   282,000             $  153,000
         Accountsreceivable                                                                 139,000                 117,000
         Inventory                                                                                   150,000                 180,000
         Prepaidexpenses                                                                      18,000                   27,000
         Plantassets                                                                           1,295,000              1,050,000
         Accumulateddepreciation                                                       (450,000)              (375,000)
         Patent                                                                                       153,000                 174,000
                                                                                                      $1,587,000            $1,326,000
         Accountspayable                                                                $   153,000            $   168,000
         Accruedliabilities                                                                       60,000                   42,000
         Mortgagepayable                                                                          —                     450,000
         Preferredstock                                                                         525,000                      —
         Additionalpaid-incapital—preferred                                       120,000                      —
         Commonstock                                                                         600,000                 600,000
         Retainedearnings                                                                    129,000                   66,000
                                                                                                      $1,587,000            $1,326,000
1.   The AccumulatedDepreciation account has been credited only for the depreciationexpense for the period.
2.   The RetainedEarnings account has been charged for dividends of $138,000 andcredited for the net income for the year.
      The income statement for2018 is as follows:
Salesrevenue                                     $1,980,000
Cost ofsales                                         1,089,000
Grossprofit                                              891,000
Operatingexpenses                                690,000
Netincome                                         $   201,000
Instructions
(a)Â Â Â Â From theinformation above, prepare a statement of cash flows (indirectmethod) for Hartman, Inc. for the year ended December 31, 2018.
(b)Â Â Â Â From theinformation above, prepare a schedule of cash provided by operatingactivities using the direct method.
