Prepare a schedule of cash flows from operating activities Following is the income statement for JKL Limited.

JKL LIMITED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2022

$ $

Sales 13 000 Less: Cost of goods sold 6 000 Gross profit 7 000 Operating expenses 2 200 Depreciation 1 400 3 600 Operating profit before income tax 3 400 Income tax expense 1 100 Net profit after tax 2 300 Additional information:

a All sales were on credit.

b Accounts receivable decreased by $2000 during the year.

c All stock purchases were on credit.

d Inventory increased by $1800.

e Accounts payable decreased by $3100 during the year.

f Income taxes payable increased by $600 during the year.

g All operating expenses are paid in cash in the year incurred.

Prepare a schedule of cash flows from operating activities using:

1 the direct method 2 the indirect method.