a. Prepare a statement of cash flows using the direct method.

b. Prepare a statement of cash flows using the indirect method

Income statement. Net Sales 23000000 Cost of sales 8100000 Gross margin 14900000 Operating expenses. 3000000 Licensing expenses contract with engineering compon 2000000 400000 Salary expense 2000000 insurance and general expenses 2000000 Adveritising expense 300000 Interest expense 3000000 Depreciation account 600000 Amortisation 13300000 Interest revenue 200000 1800000 Net income Income statement. Net Sales 23000000 Cost of sales 8100000 Gross margin 14900000 Operating expenses. 3000000 Licensing expenses contract with engineering compon 2000000 400000 Salary expense 2000000 insurance and general expenses 2000000 Adveritising expense 300000 Interest expense 3000000 Depreciation account 600000 Amortisation 13300000 Interest revenue 200000 1800000 Net income