Western Telecommunication Company's balance sheet as at March 31, 20X7 and 20X8 id statement of profit and loss for the year ended March 31, 20X8 are as follows: WESTERN TELECOMMUNICATION COMPANY Balance Sheet, March 31 Assets Non-current assets 20X8 20X7 Property, plant and equipment Deduct Accumulated depreciation Property, plant and equipment, net Current assets Inventories. Financial assets Investments 720,000 540,000 362,000 305,000 358,000 235,000 151,000 119,000 18,000 66,000 Trade receivables (net of allowance for credit losses 29,000 166,000 28,000, 12,000). Cash and cash equivalents 12,000 69,000 6,000 574,000 2,000 657,000 Other current assets: Prepaid expenses Total assets. Equity and Liabilities Equity Equity share capital Other equity. Liabilities Non-current liabilities Financial liabilities Borrowings 155,000 85,000 102,000 120,000 Other non-current liabilities 87,000 57,000 191,000 191,000 Current liabilities Financial liabilities Trade payables... Current tax liabilities Total equity and liabilities WESTERN TELECOMMUNICATION COMPANY Statement of Profit and Loss For the year ended March 31, 20X8 30,000 187,000 9,000 17,000 574,000 657,000 Sales *570,000 Interest income 2,000 Gain on sale of investments 7,000 Total income 579,000 Expenses Cost of goods sold 445,000 Depreciation expense 89,000 Selling and administrative expenses 46,000 Finance costs 14,000 Loss on sale of equipment 3,000 Total expenses 597,000 Profit before tax 18,000 Tax expense 0 Profit for the period (18,000) Additional information: 1. Purchased equipment for cash, 150,000. 2. Sold equipment for cash, 10,000 (cost, 45,000; accumulated depreciation, '32,000). 3. Purchased investments for cash, '30,000. 4. Sold investments for cash, '85,000 (cost, 78,000). 5. Purchased equipment in exchange for debentures, 75,000. 6. Issued shares for cash, 50,000. 7. Converted debentures into equity shares, '20,000. 8. Redeemed debentures, 25,000. 9. Wrote off 14,000 of trade receivables and recognized bad debt expense of 10,000, included in selling and administrative expenses. Required 1. Prepare the statement of cash flows using the direct method. Prepare the statement of cash flows using the indirect method.