Sansa Accessories, Inc. reported the following comparative balance sheets and income statement for the current year.

Sansa Accessories purchased new equipment for $ 948 and sold equipment with a net book value of $ 320. Both events were cash transactions. It paid any dividends declared. It repaid $ 120 of long-term debt during the year.

Required

a. Prepare the operating activities section of the statement of cash flows using the indirect method.

b. Prepare the operating activities section of the statement of cash flows using the direct method.

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Sansa Accessories, Inc. Comparative Balance Sheets At December 31 $ 29 Accounts Receivable-net Total Current Assets Plant and Equipment -net Accounts Payable Total Current Liabilities Total Liabilities Retained Eamings Total Shareholders' Equity Total Liabilities and Equity Sansa Accessories, Inc. Income Statement For the Year Ended December 31 Current Year Sales Operating Expenses: $7,915 Cost of Goods Sold Depreciation Salaries Expense Insurance Loss on Sale of Equipment $6,620 298 687 24 90 7,719 196 $ 49 S 147 Income before Tax Provision for Income Tax Net Income