The comparative balance sheets and income statement of Piura Manufacturing follow.

Additional transactions for 20X2 were as follows:

1. Cash dividends of $8,000 were paid.

2. Equipment was acquired by issuing common stock with a par value of $6,000. The fair market value of the equipment is $32,000.

3. Equipment with a book value of $12,000 was sold for $6,000. The original cost of the equipment was $24,000. The loss is included in operating expenses.

4. Two thousand shares of preferred stock were sold for $4 per share.

Required: Prepare the Statement of Cash Flows under both Direct and Indirect methods using the T account approach

Piura Manufacturing Comparative Balance Sheets For the Years Ended June 30, 20Xland 20X2 20X1 20X2 Assets Cash $ 72,000 $ 146,400 Accounts receivable 44,000 48,000 Inventory 64,000 44,000 Plant and equipment 104,000 112,000 Accumulated depreciation (52,000) (48,000) Land 20,000 20,000 Total assets $252,000 $ 322,400 Liabilities and equity Accounts payable $ 32,000 $ 48,000 Wages payable 4,000 2,400 Bonds payable 24,000 16,000 Preferred stock (no par) 4,000 12,000 Common stock 30,000 36,000 Paid-in capital in excess of par 50,000 76,000 Retained earnings 108,000 132,000 Total liabilities and equity $252,000 $ 322,400 Piura Manufacturing Income Statement For the Year Ended June 30, 20X2 Sales $ 320,000 Cost of goods sold (200,000 Gross margin $ 120,000 Operating expenses (88,000) Ner income $ 32,000