Presented below is the comparative trial balance and additional

Presented below is the comparative trial balance and additional information for The IN Crowd Inc., which has a calendar year end. Credit balances are shown in brackets.

The IN Crowd Inc.

Cash $9,900 $(5,000)Accounts Receivable $24,100 $20,000Merchandise Inventory $5,000 $7,000Prepaid Expenses $1,000 $500Equipment $42,000 $35,000Accumulated Depreciation $(10,000) $(7,000)Accounts Payable $(17,000) $(10,000)Salaries Payable$(3,000) $0Income Tax Payable $(1,000) $0Bank Loan Payable $(10,000) $(12,000)Common Shares $(5,000) $(4,000)Retained Earnings $(24,500) $(14,900)Dividends $5,000 $5,000Revenue $(177,000) $(145,000)Cost of Goods Sold $58,000 $43,000Salaries Expense $69,000 $55,000Operating Expenses $26,000 $26,500Depreciation Expense $5,000 $2,500Interest Expense $500 $600Income Tax Expense $3,000 $2,800Gain on Disposal of Equipment$(1,000) $0

Additional information regarding fiscal 2015:
1. New equipment costing $10,000 was purchased for cash.
2. Old equipment costing $3,000 was sold for $2,000 cash when the carrying amount was $1,000.
3. A cash dividend of $5,000 was paid during the year.
4. Accounts payable pertain to merchandise purchases.

Instructions

1. Using the direct method, prepare a statement of cash flows for the year ended December 31, 2015.
2. Using the indirect method, prepare the Operating Activities section of the statement of cash flows for the year ended December 31, 2015.