Assignment: Statement of Cash Flows

$Scenario

Below is information from the Biddle Company income statement and current assets and current liabilities from the balance sheet as of December 31, 2017 and 201

sales revenue. 142,000

expenses

cost of goods sold $ 57,000

deprecitaton expense 19,000

salaries expense 33,000

rent expense 10,500

insurance expense 5,300

interest expense 5,100

utilities expense 4,300

net income 7,500

Biddle company

Select balance sheet accounts

at December 31 2018 2017

accounts receivable $ 7,100 $ 8,800

inventory 3,480 2,290

accounts payable 5,900 7,600

salaries payable 1,800 850

utilities payable 520 310

prepaid insurance' 410 580

prepaid rent 520 330

Questions

1. Prepare the cash flows from operating activities section of the companys 2018 statement of cash flows using the direct method.
2. Prepare the cash flows from operating activities section of the companys 2018 statement of cash flows using the indirect method.
3. Compare the two statements of cash flows and comment on the differences