The Carpet Companys 2019 and 2020 balance sheets included the following items:

	December 31
	2020	2019
Debits
Cash	$10,500	$ 4,000
Accounts receivable	8,000	9,000
Merchandise inventory	21,000	18,000
Equipment	18,000	15,000
Totals	$57,500	$46,000
Credits
Accumulated depreciation, equipment	$ 4,000	$ 3,000
Accounts payable	7,000	5,000
Taxes payable	1,000	2,000
Dividends payable	1,500	0
Common stock, $10 par value	27,000	25,000
Contributed capital in excess of par, common stock	6,000	5,000
Retained earnings	11,000	6,000
Totals	$57,500	$46,000

The Carpet Companys income statement was as follows:

CARPET COMPANY Income Statement For the Year Ended December 31, 2020
Sales		$61,000
Cost of goods sold	$40,000
Wages and other operating expenses	6,300
Income taxes expense	4,200
Depreciation expense	1,500	52,000
Net income		$ 9,000

Required:

Prepare the statement of cash flows under both the direct method and the indirect method for the year ended December 31, 2020. Additional information includes the following:

1. Equipment costing $3,500 was purchased during the year.
2. Fully depreciated equipment that cost $500 was discarded and its cost and accumulated depreciation were removed from the accounts.
3. Two hundred shares of stock were sold and issued at $15 per share.\
4. The company declared $4,000 of cash dividends and paid $2,500.