Given the subsequent information:

Sales                                                                    $242,807

Gain on sale of available for sale                         $2,400

Equity in earnings of 30% owned company         $5,880

Gain on sale of land                                             $10,700

Total                                                                     $261,787

Cost of Sales                                                        $138,407

General and Admin expenses                              $25,010

Depreciation                                                        $1,250

Interest expense                                                $1,150

Income taxes                                                      $34,952

Net Income                                                         $61,018

The subsequent data presents the difference between last year and the current year balances.

Cash                                                                   $21,100

Available for sale securities                                $(9,200)

Accts Rec.                                                           $25,000

Allow for uncollectible accounts                          $0

Inventory                                                            $17,500

Investment in 30% owned company                   $5,880

Land                                                                    $(21,300)

Building                                                                $ 0

Equipment                                                            $81,500

Less Accum Depreciation                                      $(1,250)

Total Assets                                                          $119,230

Accounts Payable                                                  $(3,890)

Income taxes payable                                           $4,616

Bonds payable                                                       $65,000

Less Unamortized discount                                   $150

Deferred tax liability                                              $336

Preferred stock                                                     $(30,000)

Common stock                                                      $30,000

Retained earnings                                                $53,018

Total Liabilities and equity                                    $119,230

Additional Information:

a. On Jan. 8, the company sold marketable equity securities for cash. The original cost of the securities is $9,200.

b. Only July 17th, 3 acres of land were sold for cash of $32,000.

c. On Sept. 3, the company purchased equipment for cash.

d. On Nov. 10, bonds payable were issued by the company, at par, for cash.

e. On Dec. 15, the company declared and paid an $8,000 dividend to common stockholders.

f. General and Administrative expenses include $3,000 of bad debt expense.

f. No dividends were received during the year from the 30% owned investee.

h. The company's preferred stock is convertible into common stock at a rate of one share of preferred stock for two shares of common stock. The preferred stock and common stock have par values of $2 and $1, respectively.

i. For purposes of the statement of cash flows, the company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

Required:

a. Prepare a Statement of Cash Flows in good form using the above information and the indirect method.

b. Prepare the Net Cash Provided by Operating Activities section, using the above information, using the direct method.