Lemon Zester Company's Balance Sheet for December 31, 2019 and the Income Statement for 2020 are shown below.

Balance Sheet as of December 31,2019
Cash	$10,000
Accounts receivable	5,000
Inventory	12,000
Property and equipment, net	20,000
	$47,000
Accounts payable	$10,000
Note payable, long-term	5,000
Contributed earnings	20,000
Retained earnings	12,000
	$47,000
Income Statement for 2020
Sales	$13,000
Cost of goods sold	3,000
Wage expense	3,000
Interest expense	1,000
Other expenses	500
Net income	$5,500

Additional Data for 2020: Sales were $13,000; $8,000 in cash was received from customers. Bought new land for cash, $10,000. Sold other land for its book value of $5,000. Paid $1,000 principal on the long-term note payable and $1,000 in interest. Issued new shares for $10,000 cash. $1,000 of dividends were declared and paid. Paid $5,500 on accounts payable. No inventory purchases were made; other expenses were incurred on account. All wages were paid in cash. Other expenses were on account. a. Prepare the Statement of Cash Flows for the year ended December 31, 2020 using the indirect method. b. Prepare the Statement of Cash Flows for the year ended December 31, 2020 using the direct method. c. Interpret the Statement of Cash Flows by explaining the main sources and uses of cash during the year.