question in the pic Transcribed Image Text: Dela Rosa Company Company The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the following condensed

question in the pic Transcribed Image Text: Dela Rosa Company Company
The income statement for the year ended December 31, 2020, for Dela Rosa Company Company contains the
following condensed information.
Dela Rosa Company Company
Income Statement
For the Year Ended December 31, 2X20
Sales revenue
P6,583,000
Cost of goods sold
Operating expenses (excluding depreciation)
Depreciation expense
Loss on disposal of plant assets
Income before income taxes
Income tax expense
Net income
P2,810,000
2,086,000
880,000
24,000
5,800,000
783,000
353,000
P430,000
The P24,000 loss resulted from selling equipment for P270,000 cash. The equipment was purchased at a cost
of P750,000. The following balances are reported on Delar Rosa’s comparative balance sheets at December
31.
Dela Rosa Company Company
Comparative Balance Sheets
2X19
P130,000
610,000
867,000
501,000
2X20
Cash
Accounts receivable
P672,000
775,000
834,000
521,000
Inventory
Accounts payable
Income tax expense of P353,000 represents the amount paid in 2020. Dividends declared and paid in 2020
totaled P200,000.
Required:
Prepare the statement of cash flows using
a. Indirect method
b. Direct method