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 2018.

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.

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 2018. Biddle Company Income Statement For Year Ended December 31, 2018 Sales revenue $ 142,200 Expenses Cost of goods sold S 57,000 Depreciation expense S 19,500 Salaries expense S 33.000 Rent expense S 10.500 Insurance expense S 5,300 Interest expense S 5.100 Utilities expense S 4,300 Net income $ 7.500 Biddle Company Selected Balance Sheet Accounts At December 31 2018 Accounts receivable $ 7.100 Inventory S 3,480 Accounts payable S 5,900 Salaries payable $ 1.180 Utilities payable $ 520 Prepaid insurance $ 410 Prepaid rent S 520 S S S S S S S 2017 8.800 2.290 7.600 850 310 580 330 Questions 1. Prepare the cash flows from operating activities section of the company's 2018 statement of cash flows using the direct method. 2. Prepare the cash flows from operating activities section of the company's 2018 statement of cash flows using the indirect method. 3. Compare the two statements of cash flows and comment on the differences