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6. The balance sheet and income statement for Hours Gone Inc. are presented below. Prepare the cash flow statements under both the indirect and direct methods for 2019.

Hours Gone Inc.
Balance sheet
	2019	2018
Cash	7,500,000	6,300,000
Accounts receivable	4,560,000	4,400,000
allowance for doubtful accounts	(135,000)	(125,000)
Inventory	2,400,000	2,375,000
Supplies	48,000	52,000
Prepaid insurance	45,000	65,000
Investments, fair value method	1,200,000	1,100,000
Investments, equity method	2,400,000	2,200,000
Property, plant & equipment	5,150,000	4,150,000
Accumulated depreciation	(510,000)	(450,000)
Total Assets	22,658,000	20,067,000
Accounts payable	3,750,000	3,522,000
Accrued liabilities	125,000	145,000
Income tax payable	150,000	50,000
Notes payable, long-term	1,450,000	1,250,000
Bonds payable	4,500,000	5,000,000
Common stock	500,000	400,000
Additional paid in capital	4,500,000	3,600,000
Additional paid in capital - stock options	150,000	100,000
Retained Earnings	7,533,000	6,000,000
Total liabilities and stockholders' equity	22,658,000	20,067,000

Hours Gone Inc.
Income statement
Sales revenue	22,520,000
Cost of goods sold	12,500,000
Gross profit	10,020,000
S&A expenses	6,000,000
Pre-tax operating income	4,020,000
Investment gains, unrealized	200,000
Investment income, equity method	300,000
Other income and gains	500,000
Loss on sale of equipment	(45,000)
Total other expenses and losses	(45,000)
Pre-tax income	4,475,000
Income tax	895,000
Net income	3,580,000
Other information:
Hours Gone paid dividends during the year
Hours Gone sold equipment with an original cost of $100,000 and accumulated depreciation of $50,000 for $5,000
Hours Gone issued $1,000,000 in common stock for equipment
The company also purchased equipment for cash.
The company had stock option expense of $50,000 during the year

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