The income statement, balance sheets, and additional information for Communication Accessories are provided.

COMMUNICATION ACCESSORIES Income Statement For the Year Ended December 31, 2021
Revenues				$	2,800,000
Gain on sale of land					4,000
Total revenues					2,804,000
Expenses:
Cost of goods sold	$	1,900,000
Operating expenses		575,000
Depreciation expense		38,000
Interest expense		16,000
Income tax expense		63,000
Total expenses					2,592,000
Net income				$	212,000

COMMUNICATION ACCESSORIES Balance Sheets December 31
	2021				2020
Assets
Current assets:
Cash	$	182,000			$	187,000
Accounts receivable		83,000				95,000
Inventory		121,000				138,000
Prepaid rent		7,000				5,000
Long-term assets:
Investment in stock		195,000				100,000
Land		230,000				260,000
Equipment		305,000				225,000
Accumulated depreciation		(138,000	)			(100,000	)
Total assets	$	985,000			$	910,000
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	40,000			$	58,000
Interest payable		1,000				2,000
Income tax payable		12,000				10,000
Long-term liabilities:
Notes payable		285,000				205,000
Stockholders' equity:
Common stock		350,000				350,000
Retained earnings		297,000				285,000
Total liabilities and stockholders equity	$	985,000			$	910,000

Additional Information for 2021:

1. Purchase additional investment in stocks for $95,000.
2. Sell land costing $30,000 for $34,000 resulting in a $4,000 gain on sale of land.
3. Purchase $80,000 in equipment by borrowing $80,000 with a note payable due in three years. No cash is exchanged in the transaction.
4. The company declares and pays a cash dividend of $200,000.

Required: 1. Prepare the statement of cash flows for Communication Accessories using the direct method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)

2. Prepare the statement of cash flows using the indirect method. Disclose any noncash transactions in an accompanying note. (List cash outflows and any decrease in cash as negative amounts.)