New Vision Company completed its income statement and balance sheet for 2017 and provided the following information:

Required:

1. Present the operating activities section of the statement of cash flows for New Vision Company using the indirect method.

2. Of the potential causes of differences between cash flow from operations and net income, which are the most important to financial analysts?

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$66,000 Service Revenue Expenses: Salaries $42,000 Depreciation 7,300 Utilities 7,000 Other 1,700 58,000 $ 8,000 Net Income Decrease in Accounts Receivable $12,000 Bought a small service machine Increase in Salaries Payable 5,000 9,000 Decrease in Other Accrued Liabilities 4,000