The financial statements of Walker company comparative Balance sheets December 31

Additional information
a. All sales are made on credit.
b. All inventory purchases are on credit.
c. Accounts payable balances result from merchandise purchases.
d. Prepaid expenses relate to other operating expenses.
e. Equipment costing 21375 with accumulated depreciation of 11100 was sold for cash.
f. Equipment was purchased for cash.
g. The change in the balance of accumulated depreciation resulted from depreciation expense and from sale of equipment.
h. The change in balance of retained earnings resulted from dividend declarations and net income.

Required
a. Prepare a statement of cash flows using indirect method for year 2008.
b. Prepare a statement of cash flows using direct method for year2008.

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Assets 2008 2007 S 43,000 S Cash Accounts Receivable Marchandise Invento Prepaid Expenses Property, Plant and Equipment Less: Accumulated Dep 23,925 69,825 S 156,000146.475 1,650 S 135,825 S 146,700 47.550 S 337.650 S 341.025 S 61,175 S 3,600 S S (61.950) S Total Liabilities and Stockholders Equity S 28,800 S S 5,100 S Accounts Payable Income taxes Payable Dividend payable Bond Payable Common Stock Retained Earnings 33,750 4,425 4,500 37,500 S 198,750 S198,750 62.100 S 337.650 S 341.025 S 105,000 S Total Walker Company Income Statement For the year Eided December 31, 2008 Particulars Amount Amount Revenues Sales S 446.100 S 446.100 Less: Expenses Cost of good sold operating expenses Depreciation Loss on sale of equipment Income tax expense 225,300 S 120,300 S 25.500 4.125 S 13,725 S388,950 57.150 Net income