Norton Corps December 31, 20X5 financial statements showed the following:

Statement of Financial Position	20X5	20X4
Cash	$273,800	$30,600
Accounts receivable	107,000	142,200
Inventory	400,000	384,000
Equipment	960,000	888,000
Less: Accumulated depreciation	(432,000)	(384,000)
Investment	80,000	142,000
	$ 1,388,800	$ 1,202,800
Accounts payable	$92,600	$79,200
Income tax payable	15,400	21,600
Bonds payable	100,000	0
Common shares	504,000	504,000
Retained earnings	676,800	598,000
Total credits	$ 1,388,800	$1,202,800

Statement of Comprehensive Income

Sales		$1,642,700
Cost of goods sold	$720,000
Depreciation	161,000
Other cash expenses	525,600
Income tax	93,600
Gain on sale of equipment	(3,200)
Loss on sale of investment	5,000	1,502,000
Net earnings and comprehensive income		$140,700

Additional information:

• During the year, equipment with an original cost of $183,000 was sold for cash.

Required:

1. Prepare the 20X5 statement of cash flow, using the two-step indirect method. Please show your calculations. (Note: Omit separate disclosure of cash paid for interest and income tax) Include t-accounts for equipment, accumulated depreciation, investments and retained earnings. Show journal entries for any assets sold.
2. Prepare the 20X5 statement of cash flow, using the direct method.