The following information was taken from the 2015 financial records of Price Restaurant Supply Company:

The company sold a piece of plant equipment for cash that had originally cost $100,000. The accumulated depreciation associated with the equipment at the time of sale was $20,000.

REQUIRED:
Prepare a statement of cash flows for the year ended December 31, 2015, using both the direct and indirectmethods.

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INCOME STATEMENT Sales Cost of goods sold Depreciation expense Insurance expense Interest expense Gain on sale of plant equipment Net income BALANCE SHEETS Cash Accounts receivable Inventory Prepaid insurance Plant equipment Less: Accumulated depreciation $160,000 (100,000) (12,000) (10,000) (11,000) 10,000 37,000 2015 2014 $173,000 $120,000 65,000 110,000 24,000 350,000 60,000 210,000 14,000 275,000 (67,000)75 Total assets Accounts payable Bonds payable Premium on bonds payable Common stock ($10 par value) Additional paid-in capital Retained earnings 200,000 3,000 75,000 125,000 211,000 $665,000 $665,000 $594,000 51,000 50,000 200,000 5,000 40,000 95,000 204,000 $594,000 Total liabilities and shareholders' equity