Tom and Company reports the following income statement for the year ended December 31, 2021:

Sales$2,100,000 Cost of goods sold831,600 Gross profit1,268,400 Depreciation expense88,000 Selling and administrative expense758,000 Income before tax422,400Income tax expense168,960Net income$ 253,440

The company also reports the following information from the balance sheet:

December 31, 2021December 31, 2020Cash$ 90,000 $ 24,000 Accounts receivable80,00060,000Inventory14,00016,000Accounts payable160,000 170,000 Accrued selling and admin expenses12,0008,000 Taxes payable204,000 82,000 Dividends payable20,00044,000

Required:

a. Prepare, in good form, the operating section of the statement of cash flow, using the direct method for Tom and Company for December 31, 2021.

b. Prepare, in good form, the operating section of the statement of cash flow, using the indirect method for Tom and Company for December 31, 2021.