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

In addition, the following information is available:
€¢ Accounts Payable balances resulted from merchandise inventory purchases.
€¢ The book value of the equipment was $24,000.
€¢ Declared and paid $25,000 dividends.
€¢ Purchased a truck costing $100,000 by issuing a long-term note payable of $20,000 as a partial payment.
Requirements
1. Prepare a cash flow statement for KTA using the indirect method.
2. Prepare the cash flow from operating activities section by using the direct method.

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KTA Company Account Balances As at December 31 2014 2013 Cash Accounts Receivable Inventory Prepaid Insurance Accounts Payable Accrued Liabilities Tax Payable $22,800$30,100 42,800 21,000 1,400 18,000 16,800 1,800 27,600 15,000 3,600 26,000 14,200 4,600 KTA Company Income Statement For the Year Ended Dec 31, 2014 Sales $338,000 Cost of Goods Sold Salary Expense Other Operating Expenses Gain on Disposal of Equipment Depreciation of Capital Assets Income Taxes Net Income $219,700 52,600 22,800 (6,000) 6,400 295,500 2,400 40,100