December 31 2021 2020 Debits Cash Accounts receivable Merchandise inventory Equipment.. Totals $10,500 8,000 21,000 18,000 $57,500 $ 4,000 9,000 18,000 15,000 $46,000 Credits Accumulated depreciation, equipment Accounts payable. Taxes payable Dividends payable... Common stock, $10 par value... Contributed capital in excess of par, common stock.... Retained earnings ... Totals $ 4.000 7,000 1,000 1,500 27,000 6,000 11,000 $57,500 $ 3.000 5,000 2,000 0 25,000 5,000 6,000 $46,000 The Carpet Company's income statement was as follows: CARPET COMPANY Income Statement For the Year Ended December 31, 2021 $61,000 Sales Cost of goods sold Wages and other operating expenses. Income taxes expense. Depreciation expense... Net income.. $40,000 6,300 4,200 1,500 52,000 $ 9.000 Required: Prepare the statement of cash flows under both the direct method and the indirect method for the year ended December 31, 2021. Additional information includes the following: a. Equipment costing $3,500 was purchased during the year. b. Fully depreciated equipment that cost $500 was discarded and its cost and accumulated depreciation were removed from the accounts. C. Two hundred shares of stock were sold and issued at $15 per share. d. The company declared $4,000 of cash dividends and paid $2,500