You are given a choice of taking the simple interest on 100,000 invested for 2 years

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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