Los Lobos _cash flows using the direct and indirect methodsLos Lobos _cash flows utilizing the direct and oblique methods1. Los Lobos Ledger PreparationReview the next data: 12-31-2007 12-31-2006Money $ 35,000 $ 32,000Accounts receivable 33,000 30,000Allowance for uncertain accounts (1,300) (1,100)Stock 31,000 47,000Property, plant, & gear 100,000 95,000Accrued depreciation (16,500) (15,000)Commerce accounts payable (25,000) (15,500)Revenue taxes payable (21,000) (29,100)Deferred earnings taxes (5,300) (four,600)eight% callable bonds payable (45,000) (20,000)Unamortized bond low cost four,500 5,000Widespread inventory (50,000) (40,000)Extra paid-in capital (9,100) (7,500)Retained earnings (25,200) (64,600)Gross sales (558,300) (778,700)Value of products bought 250,000 380,000Promoting bills 141,500 172,000Basic and administrative bills 137,000 151,300Curiosity expense four,300 2,600Revenue tax expense 20,400 61,200 $ - $ -Extra data:1. Los Lobos bought $5,000 in gear throughout 2007.2. Los Lobos allotted one-third of its depreciation expense to promoting bills and the rest to common and administrative bills.three. Unhealthy debt expense for 2007 was $5,000, and write-offs of uncollectible accounts totaled $four,800.four. $12,000 of the debt is present portion.Money Gross sales $72,600Collections on Receivables 477,900Purchases (219,500)Buy of Tools (5,000)Wages (150,700)Funds to Suppliers (126,300)Tax Funds (27,800)Borrowing 30,000Compensation of Debt (5,000)Curiosity Funds (three,800)Sale of Inventory 11,600Dividends (51,000)Put together a press release of money flows utilizing the direct and oblique strategies.Put together a labeled steadiness sheet.