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

June 30, 2021 and 2020.

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

2021 2020

Net Sales $450,000 $450,000

Cost of goods sold 180,000 215,000

Gross margin 270,000 235,000

Operating expenses:

Selling expenses 68,000 53,000

General and administrative expenses 62,800 72,650

Total operating expenses 130,800 125,650

Operating income 139,200 109,350

Interest expense 14,600 13,000

Income before taxes 124,600 96,350

Income taxes 48,700 31,800

Net income $75,900 $ 64,550

Iringa Furniture Mart Balance Sheets, 30th June,

2021 2020

Current assets:

Cash $ 12,775 $ 47,650

Accounts receivable 25,000 17,450

Inventory 77,200 50,100

Prepaid selling expenses 4,000 6,000

Total current assets 118,975 121,200

Property, plant and equipment (net of

accumulated depreciation) 158,000 136,700

Total assets $276,975 $257,900

Liabilities and stockholders' equity

Current liabilities

Accounts payable $56,995 $63,200

Note payable 10,000 10,000

Accrued admin payables 2,000 1,800

Total current liabilities 68,995 75,000

Long-term debt 50,000 70,000

Total liabilities 118,995 145,000

Stockholders' equity

Common stock 28,500 20,600

Retained earnings 129,480 92,300

Total stockholders' equity 157,980 117,300

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