A) Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the indirect method (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000)

B) Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

The statement of income of Blue Spruce Transport Inc. for the year ended December 31, 2020, reported the following condensed information: BLUE SPRUCE TRANSPORT INC. Income Statement Year Ended December 31, 2020 Service revenue $ 585,000 Operating expenses 445,000 Income from operations 140,000 Other revenues and expenses Gain on disposal of equipment $55,000 Interest expense 18,000 37,000 Income before income tax 177,000 Income tax 35,400 Net Income $ 141,600 Blue Spruce's statement of financial position included the following comparative data at December 31: 2020 2019 Accounts receivable $69,500 $ 72,000 Prepaid insurance 17,500 11,500 Accounts payable 45,000 79,000 Interest payable 7,000 3,000 Income tax payable 19,000 11,500 Unearned revenue 22,000 41,000 Additional information: Operating expenses include $210,000 in depreciation expense. The company follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE SPRUCE TRANSPORT INC. Partial Statement of Cash Flows Cash flows from operating activities Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE SPRUCE TRANSPORT INC. Partial Statement of Cash Flows Cash flows from operating activities Adjustments to reconcile net income to net cash provided by operating activities: Net cash operating activities Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLUE SPRUCE TRANSPORT INC. Partial Statement of Cash Flows Cash flows from operating activities Cash payments Net cash operating activities