Chopin Companys comparative statement of financial position and income statement as of December 31, 2019, are shown below:

Chopin Company

Comparative statement of financial position

2019 2018

Plant Assets
Equipment	$154,000	$130,000
Less: Accumulated depreciation	(35,000)	(25,000))
	119,000	105,000
Patent	46,000	50,000
	165,000	155,000
Current assets
Inventory	40,000	60,000
Equity Investment(non-trading)	35,000	18,000
Accounts receivable	62,000	49,000
Prepaid rent	5,000	4,000
Cash	6,000	9,000
Total current assets	148,000	140,000
Total assets	$313,000	$295,000
Equity
Share capital -ordinary, $10 par	130,000	130,000
Retained Earnings	57,000	36,000
	187,000	166,000
Non-current liabilities
long term Notes Payable	60,000	67,000
Current liabilities
Accounts payable	54,000	52,000
Salaries and wages payable	8,000	4,000
Income tax payable	4,000	6,000
Total current liabilities	66,000	62,000
Total liabilities	126,000	129,000
Total equity and liabilities	$313,000	$295,000
Chopin Company Income statement For the year ended December 31, 2019
Sales Revenue	$338,150
Cost of goods sold	175,000
Gross Profit	163,150
Expenses
Operating expenses	120,000
Income from operations	43,150
Other income and expense
interest expense	(11,400)
gain on sale of equipment	2,000
Operating income	33,750
Income tax expense	6,750
Net income	$27,000

The following is additional information concerning Chopins transactions during the year ended December 31, 2019:

1. Dividends in the amount of $6,000 were declared and paid during 2019.

2. Depreciation and amortization expense ($4,000 on the patent) are included in operating expenses.

3. Equipment that had a cost of $30,000 and was 70% depreciated was sold for cash.

4. Additional equity investment was purchased during 2019.

Instructions:

a) Prepare a statement of cash flows for Chopin Company for the year ended December 31, 2019, using the direct method. Be sure to support the statement with appropriate calculations.

b) Using the indirect method calculate only the net cash flows from operating activities. Be sure to support the statement with appropriate calculations.