1.Prepare the cash flows from operating activities section of the company's 2018 statement of cash flows using the direct method.

2.Prepare the cash flows from operating activities section of the company's 2018 statement of cash flows using the indirect method.

3.Compare the two statements of cash flows and comment on the differences.

Biddle Company Income Statement For Year Ended December 31, 2018 Sales revenue 8 142,200 Expenses Cost of goods sold 8 57,000 Depreciation expense 8 19,500 Salaries expense 8 33,000 Rent expense 8 10,500 Insurance expense 8 5,300 Interest expense $ 5,100 Utilities expense 8 4,300 Net income 8 7,500 Biddle Company Selected Balance Sheet Accounts At December 31 2018 2017 Accounts receivable $ 7,100 $ 8,800 Inventory $ 3,480 $ 2,290 Accounts payable 8 5,900 $ 7,600 Salaries payable 8 1,180 $ 850 Utilities payable 8 520 $ 310 Prepaid insurance 8 410 $ 580 Prepaid rent 8 520 $ 330