Acerler Fixtures, Inc. reported the following comparative balance sheets and income statement for the current year.

Acerler Fixtures purchased new equipment for $ 258 and sold equipment with a net book value of $ 45. Both events were cash transactions. It paid any dividends declared. It repaid $ 25 of long-term debt during the year.
Required
a. Prepare the operating activities section of the statement of cash flows using the indirect method.
b. Prepare the operating activities section of the statement of cash flows using the direct method.

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Acerier Fixtures, Inc. Comparative Balance Sheets At December 31 Accounts Receivable-net Total Current Assets Plant and Equipment-net 1 Total Current Liabilities Total Shareholders Equity Total Liabilities and Equity Acerler Fixtures, Inc. Income Statement For the Year Ended December 31 Current Year Sales $4,540 Operating Expenses Cost of Goods Sold Depreciation Insurance Gain on Sale of Equipment Other Expenses $2,539 169 49 23) 687 3,421 $1,119 $ 280 S 839 Income before Tax Provision for Income Tax Net Income