12-6 Dirext versus indirect metbod of determining cash flows from operating activities

Exercise 12-6A (Algo) Direct versus indirect method of determining cash flows from operating activities LO 121,122 Expert Electronics, Incorporated (EEI) recognized $9,200 of sales revenue on account and collected $5,700 of cash from accounts receivable. Further. EEl recognized $4,500 of operating expenses on account and paid $2,500 cash as partial settlement of accounts payable. Required Based on this information alone: o. Prepare the operating activities section of the statement of cash flows under the direct method Note: Amounts to be deducted should be indicated with o minus sign. b. Prepare the operating activities section of the statement of cash flows under the indirect method Note: Amounts to be deducted should be indicated with a minus sign. \begin{tabular}{l} Operating Activities - Direct Method \\ \hline Cash flows from operating activities: \\ Cash payments for inventory \\ Cash payments for operating expenses \\ Cash payments for salaries \\ Cash receipts from customer \end{tabular} \begin{tabular}{|l|} \hline Operating Activities - Indirect Method \\ Cash flows from operating activities: \\ \hline Net income \\ Net loss \end{tabular} Operating Activities - Indirect Method Cash flows from operating activities: Plus: Increase in accounts payable Plus: Increase in accounts receivable Plus: Increase in interest receivable Less: Increase in accounts payable Less: Increase in accounts receivable