Dela Rosa Company Company

The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed information.

Dela Rosa Company Company
Income Statement
For the Year Ended December 31, 2X20
Sales revenue		P6,583,000
Cost of goods sold	P2,810,000
Operating expenses (excluding depreciation)	2,086,000
Depreciation expense	880,000
Loss on disposal of plant assets	24,000	5,800,000
Income before income taxes		783,000
Income tax expense		353,000
Net income		P430,000

The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost of P750,000. The following balances are reported on Delar Rosas comparative balance sheets at December 31.

Dela Rosa Company Company
Comparative Balance Sheets
	2X20	2X19
Cash	P672,000	P130,000
Accounts receivable	775,000	610,000
Inventory	834,000	867,000
Accounts payable	521,000	501,000

Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020 totaled P200,000.

Required:

Prepare the statement of cash flows using:

1. Indirect method
2. Direct method