From the financial statements and additional information provided in Problem 21B-1 for Cygan Company, prepare a statement of cash flows using the direct method.

Problem 21B-1:

From the following income statement (Figure 21.14), balance sheet (Figure 21.15), and additional data for Cygan Company, prepare a statement of cash flows using the indirect method.

Additional Data
1. All Plant and Equipment were purchased with cash.
2. Sold additional 3,000 shares of stock for cash at par.
3. A $1,200 dividend was declared and paid.
4. Short-term notes used to finance inventory.

Figure 12.14:

Figure 12.15: