The following information was reported by Iringa Furniture Mart for its years ending 30^th

June 30, 2021 and 2020.

Iringa Furniture Mart Income Statements for the Year Ended 30^th June,

2021 2020

Net Sales$450,000$450,000

Cost of goods sold180,000215,000

Gross margin270,000235,000

Operating expenses:

Selling expenses68,00053,000

General and administrative expenses 62,800 72,650

Total operating expenses130,800125,650

Operating income139,200109,350

Interest expense14,60013,000

Income before taxes124,60096,350

Income taxes48,70031,800

Net income$75,900 $ 64,550

Iringa Furniture Mart Balance Sheets, 30^th June,

20212020

Current assets:

Cash$12,775$47,650

Accounts receivable25,00017,450

Inventory77,20050,100

Prepaid selling expenses4,0006,000

Total current assets118,975121,200

Property, plant and equipment (net of

accumulated depreciation)158,000136,700

Total assets$276,975$257,900

Liabilities and stockholders' equity

Current liabilities

Accounts payable$56,995$63,200

Note payable10,00010,000

Accrued admin payables2,0001,800

Total current liabilities68,99575,000

Long-term debt50,00070,000

Total liabilities118,995145,000

Stockholders' equity

Common stock28,50020,600

Retained earnings129,48092,300

Total stockholders' equity157,980117,300

Total liabilities and stockholders' equity$276,975$257,900

Dividends paid to stockholders totaled $38,720.

Depreciation expense for the year totaled $24,000.

Prepare the company's cash flow statement for year 2021 using

a) The indirect method.

b) The direct method