(a) QS 16-9 (page 642) Use the indirect method to prepare the cash from or used in operating activities section only of the statement of cash flows for the company ORWELL, INC. Comparative Statements of Financial Position December 31, 2015 2015 2014 Assets Cash Accounts receivable, net Inventory Prepaid expenses Furniture Accum. Depreciation- Furniture Total asset $95,800 $25,000 42,00052,000 86,800 96,800 6,400 5,200 10,000120,000 18,000) (10,000) $323,000 $289,000 Liabilities and Equity $16,000 $22,000 10,000 6,000 2,400 3,600 30,000 70,000 230,000 180,000 34,600 7,400 $323.000 $289,000 Accounts payable Wages payable Income tax payable Notes payable (long-term) Share capital - Ordinary, 5 par value Retained earnings Total liabilities and equity