Comparative balance sheet accounts of Meckling Company are presented below. I Meckling Company Comparative Balance Sheet Accounts As of December 31 Debit Balances 2021 2020 Cash $80,000 $31,000 Accounts Receivable 135,000 122,000 Merchandise Inventory 75,000 61,000 Investments (Available-for-sale) 55,000 85,000 PPE 215,000 193,000 Land 40,000 25,000 Totals $600,000 $$37.000 Credit Balances Accumulated Depreciation PPE 58,000 42,000 Accounts Payable 70,000 60,000 Income Taxes Payable 12,000 10,000 Long-Term Notes Payable 62,000 70,000 Common Stock 310,000 260,000 Retained Earnings 88,000 95,000 Totals 5.600.000 $537.000 Additional data: 1. Equipment that cost $10,000 and was 40% depreciated was sold in 2021. 2. Cash dividends were declared and paid during the year. 3. Common stock was issued in exchange for land. 4. Investments that cost $35,000 were sold during the year. Meckling's 2021 income statement is as follows. Sales Less: Cost of goods sold Gross profit Less: Operating expenses (includes dep. exp.) Income from operations Other revenues and expenses Gain on sale of investments $950,00 0 600,000 350.000 250,000 100,000 $15,000 Loss on sale of equipment (3.000) 12.000 Income before taxes 112.000 Income taxes 45.000 Net income $67.000 Required: (1) Prepare a statement of cash flows using the indirect method (2) Prepare the operating activities section of the statement of cash flows using the direct method