Alternate problem A The following income statement and other data are for Kennesaw Auto Glass Specialists, Inc.. Kennesaw auto glass specialists, Ine. Income Statement For the year ended 2010 December 31 Sales $450,000 Cost of goods sold 125,000 Gross margin $325,000 Operating expenses (other than depreciation) $60,000 Depreciation expense 20,000 50.000 Net income $245.000 Changes in current assets (other than cash) and current liabilities during the year were: Increase Decrease Accounts receivable 2 $15,000 Merchandise inventory $25,000 Prepaid insurance 8,000 Accounts payable 15,000 Accrued liabilities pavable 4.000 Depreciation was the only noncash item affecting net income. 1. Prepare a working paper to calculate cash flows from operating activities under the direct method. 2 Prepare the cash flows from operating activities section of the statement of cash flows under the direct method 3. Prepare the cash flows from operating activities section of the statement of cash flows under the indirect method. 4 Prove that the same cash flows amount is obtained under the indirect method by preparing the cash flows from operating activities section of the statement of cash flows tunder the indirect method. You need not prepare a working paper Alternate Problem A indirect method only