The income statement and additional data of Best Corporation follows:
BEST CORPORATION Income Statement Year Ended June 30, 2012
Revenues:
Sales revenue	$231,000
Dividend revenue	8,000	$239,000
Expenses:
Cost of goods sold	$102,000
Salary expense	48,000
Depreciation expense	28,000
Advertising expense	13,000
Income tax expense	11,000
Interest expense	3,000	205,000
Net income		$34,000
Additional data follows:
a. Collections from customers are $15,500 more than sales.
b. Dividend revenue, interest expense, and income tax expense equal their cash amounts.
c. Payments to suppliers are the sum of cost of goods sold plus advertising expense.
d. Payments to employees are $1,000 more than salary expense.
e. Acquisition of plant assets is $102,000.
f. Cash receipts from sale of land total $24,000.
g. Cash receipts from issuance of common stock total $32,000.
h. Payment of long-term note payable is $17,000.
i. Payment of dividends is $10,500.
j. Cash balance, June 30, 2011, was $25,000; June 30, 2012 was $28,000.
Requirement:
1. Prepare Best Corporation's statement of cash flows for the year ended June 30, 2012. Use the direct method.
2. Also differentiate between Indirect and Direct method of preparing statements of cash flows.