Comparative balance sheet accounts of Whispering Inc. are presented below.

WHISPERING INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019
		December 31
Debit Accounts		2020		2019
Cash		$41,600		$34,100
Accounts Receivable		70,900		60,400
Inventory		30,100		23,900
Equity investments		22,400		38,400
Machinery		29,700		18,900
Buildings		67,000		55,800
Land		7,600		7,600
		$269,300		$239,100
Credit Accounts
Allowance for Doubtful Accounts		$2,200		$1,500
Accumulated DepreciationMachinery		5,600		2,200
Accumulated DepreciationBuildings		13,600		9,000
Accounts Payable		34,800		25,000
Accrued Payables		3,300		2,600
Long-Term Notes Payable		21,200		31,200
Common Stock, no-par		150,000		125,000
Retained Earnings		38,600		42,600
		$269,300		$239,100

Additional data (ignoring taxes):

1.		Net income for the year was $42,200.
2.		Cash dividends declared and paid during the year were $21,200.
3.		A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized.
4.		Equity investments (level of ownership is less than 20%) that cost $24,800 were sold during the year for $28,500. No unrealized gains and losses were recorded on these investments in 2020.
5.		Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150.

Whisperings 2020 income statement follows (ignoring taxes).

Sales revenue					$539,700
Less: Cost of goods sold					378,700
Gross margin					161,000
Less: Operating expenses (includes $8,750 depreciation and $5,192 bad debts)					121,700
Income from operations					39,300
Other: Gain on sale of investments		$3,700
Loss on sale of machinery		(800	)		2,900
Net income					$42,200

(a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net cash flow from operating activities

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(b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

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