This is an accounting test

2020 2019 Cash 140,350 95,900 Accounts receivable (net) 95,300 102,300 Inventories 165,200 157,900 Prepaid expenses 6,240 5,860 Investments (long term) 35,700 84,700 Land 75,000 90,000 Building 375,000 260,000 Accumulated depreciation- building 71,300 58,300 Machinery & Equipment 428,300 428,300 Accumulated depreciation-machinery & equipment 148,500 138,000 Patents 58,000 65,000 Accounts payable 43,500 46,700 Accrued expenses payable 14,000 12,500 Income taxes payable 7,900 8,400 Dividens payable 14,000 10,000 Mortgage payable 40,000 Bonds payable 150,000 250,000 Common stock 450,000 375,000 Excess of issue price over par-common stock 66,250 41,250 Retained earnigns 373,640 349,810 Sales 1,100,000 Cost of goods sold 710,000 Depreciation expense 23,500 Patent amortization 7,000 Other operating expenses 196,000 Income tax expense 50,000 Interest expense 26,000 Gain on sale of investment 11,000 Additional information: 1. Land costing $15,000 was sold for $15,000 2. A mortgage note was issued for $40,000. 3. A building costing $115,000 was constructed. 4. 2,500 shares of common stock were issued at $40 in exchange for the bonds payable. 5. Cash dividends declared were $74,670. 6. Common stock authorized: 70,000, with a par value of $30.00. Instructions a. Prepare a statement of cash flows for the year ended December 31, 2020, using the indirect method. b. Prepare a statement of cash flows for the year ended December 31, 2020, using the direct method