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Financial data of Fancy Footwork Company for 2013 and 2012 are presented below.
FANCY FOOTWORK COMPANY
COMPARATIVE BALANCE SHEET
AS OF DECEMBER 31, 2013 AND 2012
	2013		2012
Cash	$ 260,000		$ 230,000
Receivables	$ 156,000		$ 120,000
Inventory	$ 180,000		$ 220,000
Plant assets	$ 160,000		$ 135,000
Accumulated depreciation	$ (80,000)		$ (76,000)
Long-term investments (held-to-maturity)	$ 80,000		$ 93,000
	$ 756,000		$ 722,000
Accounts payable	$ 135,000		$ 122,000
Accrued liabilities	$ 30,000		$ 33,100
Bonds payable	$ 135,000		$ 166,000
Common stock	$ 180,000		$ 165,000
Retained earnings	$ 276,000		$ 235,900
	$ 756,000		$ 722,000
FANCY FOOTWORK COMPANY
INCOME STATEMENT
For the year ended Dec 31, 2013
Sales		750000
Cost of Goods Sold		530000
Gross Margin		220000
Selling and administrative expenses		106000
Income from Operations		114000
Other revenues and gains
Gain on sale of investments		7000
Income before tax		121000
Income tax expense		48400
Net Income		72600
Additional information:
During the year, $9000 of common stock was issued in exchange for plant assets. No plant assets were sold in 2012. Cash dividends were $32500.
Required:
A) Prepare a statement of cash flows using the indirect method.
B) Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

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