Comparative balance sheets at December $31,2019$ and $2020,$ for the Ehrlich Company are shown below.

Balance Sheet

$20202019$

Cash $98,00062,000$

Accounts Receivable $79,00074,000$

Inventory $124,000118,000$

Prepaid Expenses $6,0005,000$

Land $86,000$

Plant Assets $279,000224,000$

Accumulated Depreciation $-80,000-86,000$

Franchise $24,00032,000$

Total Assets $616,000429,000$

Accounts Payable $53,00041,000$

Notes Payable $58,00063,000$

Bonds Payable $129,000$

Common Stock $275,000250,000$

Additional Paid$-$in Capital $56,00046,000$

Retained Earnings $45,00029,000$

Total Equities $616,000429,000$

Additional Information:

$(1)$ A fully depreciated plant asset, which originally cost $$20,000$ and had no salvage value, was sold for $$1,000.$

$(2)$ Bonds payable were issued at par value. Two$-$thirds of the bonds were exchanged for land; the remaining one$-$third was issued for cash.

$(3)$ Common stock was sold for cash.

$(4)$ The only entries in the Retained Earnings account are for dividends paid

and for the net income for the year.

$(5)$ Normal depreciation expense was recorded during the year and the franchise was amortized.

$(6)$ The income statement for the year is as follows:

Sales $186,000$

Cost of sales $102,000$

Gross Profit $84,000$

Operating expenses $59,000$

Income before gain $25,000$

Gain on sale of plant asset $1,000$

Net Income $26,000$

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

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