40 CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) Sales $1,320 Cost of goods sold 500 Gross margin 820 Salaries expense $220 Depreci Amortization expense Interest expense Loss on sale of cash equivalents 456 Income before taxes 364 Income tax expense 182 Net Income $ 182 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $102 $100 $ 2 Accounts receivable 220 232 (12) Inventory 440 450 (10) Accounts payable 140 134 Salaries payable 86 Interest payable 20 Income tax payable 10 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method. 80 Refer to the data provided in E 21-25 for Clear Transmissions Company. Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the indirect method