Sampson Company's balance sheets for December 31, 2009 and 2008, as well as the income statement for the year ended December 31, 2009, are shown next.

Other data:
1. Dividends paid in cash during 2009 were $21,000.
2. Depreciation is included in the cost of sales.
3. The change in the accumulated depreciation account is the depreciation expense for the year.
Required
a. Prepare the statement of cash flows for the year ended December 31, 2009, using the indirect method for net cash flow from operating activities.
b. Prepare the statement of cash flows for the year ended December 31, 2009, using the direct method for net cash flow from operating activities.
c. Comment on significant items disclosed in the statement of cashflows.

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SAMPSON COMPANY Balance Sheet December 31, 2009 and 2008 2009 2008 Assets Cash Net receivables Inventory Plant assets S 38,000 72,000 98,000 195,000 S 60,000 65,000 85,000 180,000 (35.000 $355,000 Total assets $358,000 2009 2008 Liabilities and Stockholders' Equity Accounts payable Accrued liabilities (related to cost of sales) Mortgage payable Common stock Retained eamings S 85,000 44,000 11,000 180,000 38,000 $358,000 $ 80,000 61,000 174,000 40,000 $355,000 Total liabilities and stockholders' equity SAMPSON COMPANY Income Statement For Year Ended December 31, 2009 Net sales Cost of sales Gross profit Other expenses Profit before taxes Tax expense Net income $145,000 108,000 37,000 6,000 31.000 12,000 $ 19,000