The comparative balance sheet of Flack Inc. for December 31, 2013 and 2012 is shown as follows:

Assets:

Dec 31st, 2013 Dec 2012

Cash $234,660 $219,720

Accounts receivables 85,440 78,360

Inventories 240,660 231,420

Investements 0 90,000

Land 123,000 0

Equipment 264,420 207,420

Accumulated Depreciation-Equipment (62,400) (55,500)

885,780 771,420

Liabilities and Stockholders Equity

Accounts payable (merchandise Creditor) 159,180 151,860

Accrued expensies payable (operations expenses) 15,840 19,740

Dividends payable 9,000 7,200

Common stock $1par 48,000 36,000

Paid in capital excess of par -common stock 180,000 105,000

Retained earnings 473,760 451,620

885,780 771,420

The following additional information was taken from the records:

  1. The investments were sold for $105,000 cash
  2. Equipment and land were acquired for cash
  3. There were no disposals of equipment during the year
  4. Common stock was issued for cash
  5. There was a $ 58,140 credit to retained earnings for net income
  6. There was a $ 36,000 debit to retained earnings for cash dividends declared.

Required:

Prepare a statement of cash flows using the INDIRECT and DIRECT methods of presenting cash flows from operating activities