The simplified financial statements of Titanium Ltd appear below.

Additional information 1. Dividends declared and paid were $26 400.
2. During the year equipment was sold for $10 200 cash. The equipment cost $21 600 and had a carrying amount of $10 200 at the time of sale.
3. Depreciation expense is included as a selling expense in the income statement.
4. All sales and purchases are on credit.
Required

(a) Prepare a statement of cash flows using the indirect method.

(b) Prepare a statement of cash flows using the direct method.

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ASSETS Cash Accounts receivable Inventory Plant and equipment TITANIUM LTD Statement of Financial Position as at 30 June Accumulated depreciation plant and equipment LIABILITIES AND EQUITY Accounts payable Current tax liability Loan payable Share capital Retained earnings 2020 2021 30 $ 37200 33 600 000 $ 15600 16 800 42 000 72 000 93 600 (26 400) $146 400 (28 800) $139 200 32 400 6000 27 600 32 400 9 600 37 200 41 600 41 600 34 000 $146 400 23 200 $139 200