Comparative balance sheets for 2016 and 2015 and an income statement for 2016 are provided below for A2Z Industries. Additional information from the accounting records of A2Z also is provided.

A2Z Industries

Comparative Balance Sheets

December 31, 2016 and 2015 ($ in 000)

2016 2015

Assets:

Cash $ 1,800 $ 1,125

Accounts receivable 1,800 1,350

Inventory 2,700 1,575

Land 2,025 1,800

Building 2,700 2,700

Less: Accumulated depreciation (900) (810)

Equipment 8,550 6,750

Less: Accumulated depreciation (1,575) (1,440)

Patent 3,600 4,500

$20,700 $17,550

Liabilities:

Accounts payable $ 2,250 $ 1,350

Accrued expenses payable 900 675

Lease liability land 450 0

Shareholders' Equity:

Common stock 9,450 9,000

Paid-in capitalexcess of par 2,250 2,025

Retained earnings 5,400 4,500

$20,700 $17,550

A2Z Industries

Income Statement

For year ended December 31, 2016 ($ in 000)

Revenues:

Sales revenue $7,935

Gain on sale of land 270 $8,205

Expenses:

Cost of goods sold $1,800

Depreciation expense-building 90

Depreciation expense-equipment 945

Loss on sale of equipment 45

Amortization of patent 900

Operating expenses 1,500 5,280

Net income $2,925

Additional information from the accounting records:

a. During 2016, equipment with a cost of $900,000 (90% depreciated) was sold.

b. The Statement of Shareholders Equity reveals reductions of $675,000 and $1,350,000 for stock dividends and cash dividends, respectively.

Required:

Prepare the statement of cash flows of A2Z for the year ended December 31, 2016. Present "cash flows from operating activities" by the direct method.

Required:

Prepare the statement of cash flows for A2Z Industries using the indirect method.