Comparative selected account balances and an unclassified income statement for THK Company follow:

In addition, the following information is available:
€¢ Accounts Payable balances resulted from merchandise inventory purchases.
€¢ The book value of the equipment was $13,000.
€¢ Signed a 6%, 10-year note payable in exchange for a building with a market value of $80,000.
€¢ Issued 2,000 new common shares at $10 per share.
Requirements
1. Prepare a cash flow statement for THK, using the indirect method.
2. Prepare the cash flow from operating activities section by using the direct method.

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THK Company Account Balances as at December 31 2014 2013 $28,400 Accounts Receivable Inventory Accounts Payable Wages Payable 4,700 35,20018,600 21,000 21,000 1,200 15,000 15,500 3,500 THK Company Income Statement For the Year Ended December 31, 2014 Sales $241,800 $180,000 Cost of Goods Sold Wages Supplies Property Taxes Utilities Loss on Disposal of Equipment Depreciation of Capital Assets Net Income 43,500 4,800 2,400 1,600 5,000 3.200 240,500 1,300