indirect method only, no need for direct method

Fundamental Accounting Principles 24 Edition Chapter 16 Alternate Demonstration Problem The Carpet Company's 2019 and 2020 balance sheets included the following items: December 31 2020 2019. Debits Cash ....... Accounts receivable ........ Merchandise inventory ....... Equipment......... Totals... $10,500 8,000 21,000 18,000 $57,500 $ 4,000 9,000 18,000 15.000 $46,000 $3,000 5,000 2,000 Credits Accumulated depreciation, equipment.... Accounts payable... Taxes payable... Dividends payable........... Common stock, $10 par value.... Contributed capital in excess of par, common stock Retained earnings .... Totals.... . $ 4,000 7,000 1,000 1,500 27,000 6,000 11.000 $57.500 25,000 5,000 6,000 $46,000 The Carpet Company's income statement was as follows: CARPET COMPANY Income Statement For the Year Ended December 31, 2020 Sales .. $61,000 Cost of goods sold....... Wages and other operating expenses.... Income taxes expense..... Depreciation expense ...... Net income..... $40,000 6,300 4,200 1,500 52.000 $ 9,000 Fundamental Accounting Principles 24 Edition Required: Prepare the statement of cash flows under both the direct method and the indirect method for the year ended December 31, 2020. Additional information includes the following: a. Equipment costing $3,500 was purchased during the year. b. Fully depreciated equipment that cost $500 was discarded and its cost and accumulated depreciation were removed from the accounts. C. Two hundred shares of stock were sold and issued at $15 per share. d. The company declared $4,000 of cash dividends and paid $2,500