The income statement for the year ended December 31, 2025, for Kosinski Manufacturing Company contains the following condensed information.

The \(\$ 24,000\) loss resulted from selling equipment for \(\$ 270,000\) cash. New equipment was purchased for \(\$ 750,000\) cash.
The following balances are reported on Kosinski's comparative balance sheets at December 31.

Income tax expense of \(\$ 353,000\) represents the amount paid in 2025 . Dividends declared and paid in 2025 totaled \(\$ 200,000\).
Instructions

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

b. Prepare the statement of cash flows using the direct method.

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Kosinski Manufacturing Company Income Statement For the Year Ended December 31, 2025 Sales revenue Cost of goods sold Operating expenses (excluding depreciation) Depreciation expense Loss on disposal of plant assets Income before income taxes Income tax expense Net income $2,810,000 2,086,000 880,000 24,000 $6,583,000 5,800,000 783,000 353,000 $430,000