Molloy Ltd. reported the following for the fiscal year 2014:

Additional information:
1. Accounts receivable decreased by $15,000 during the year.
2. Inventory increased by $7,000 during the year.
3. Prepaid expenses decreased by $5,000 during the year.
4. Accounts payable to suppliers increased by $10,000 during the year.
5. Accrued expenses payable increased by $4,000 during the year.
6. Income tax payable decreased by $6,000 during the year.
Instructions
Prepare the operating activities section of the cash flow statement using (a) the indirect method or (b) the direct method, as assigned by your instructor.
TAKING IT FURTHER In what circumstances will the direct method result in a different amount of cash provided (used) by operations than the indirect method.

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MOLLOY LTD. Income Statement Year Ended September 30, 2014 $580,000 340,000 240,000 Sales Cost of goods sold Gross profit Operating: expenses Depreciation expense Gain on sale of land Profit before income tax Income tax expense Prosi 96,000 25,000 (35,000) 86,000 154,000 38,000 $116,000