Blue Mountain Ltd reported the following in its financial statements for the year ended 2022. Income statement 2022 ($) 2021 ($) Net sales 60,000 52,000 Cost of sales 38,000 36,000 800 1,000 2,000 2,400 19,200 12,600 Other operating expenses Income tax Profit Balance sheet Cash Account receivable Inventory Property, plant and equipment, net Account payable Non-current liabilities Ordinary share capital Retained earnings 2,800 1,200 5,600 7,000 3,000 900 1,000 11,700 2,400 1,400 6,400 9,000 3,200 880 1,200 13,920 Required a. Use the direct method to account for the cashflows from the operating activities b. Use the indirect method to reconcile the cashflows from the operating activities