(20 marks)

Consider the following financial statements about DANIEL Co. for the current year 2015

I/S for the year ended Dec. 31, 2015

Sales	$16,000
CGS	10,000
Operating expenses	4,000
Profit from operations (EBIT)	2,000
Interest expense	200
EBT	1,800
Tax expense	600
NI	$ 1,200

Additional information:

Operating expenses include $150 of depreciation expense and a $200 impairment loss on equipment.

A/R increased by $380

Inventory decreased by $100

Prepaid expenses related to operating expense increased by $80

A/P decreased by $360

Accrued liabilities related to operating expenses decreased by $180

Interest payable decreased by $20

Unearned revenue received from customers decreased by $34

Income tax payable increased by $40

Required:

Prepare CFO section of the cash flow statement under the (a) DIRECT (12 marks);

and (b) INDIRECT methods (8 marks)