Refer to the two cases presented in M12-5, and show the cash flow from operating activities section of the 2010 statement of cash flows using the direct method.

Data from M12-5

For the following two independent cases, show the cash flows from operating activities section of the 2010 statement of cash flows using the indirect method.

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Case A Case B 2010 2009 2010 2009 Sales Revenue $10,000 $9,000 $21,000 $18,000 Cost of Goods Sold 6,000 5,500 12,000 11,000 Gross Profit 4,000 3,500 9,000 7,000 Depreciation Expense 1,000 1,000 2,000 1,500 Salaries Expense 2,500 2,000 5,000 5,000 Net Income 500 500 2,000 500 Accounts Receivable 300 400 750 600 Inventories 600 500 790 800 Accounts Payable 800 700 800 850 Salaries Payable 1,000 1,200 200 250