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Brice Corporation reported the following information: 2014 Income Statement Sales Revenue $8,200,000 Cost of goods Sold 6,400,000 Gross Profit 1,800,000 Operating expenses (includes $200,000 depreciation

Brice Corporation reported the following information:

2014 Income Statement

Sales Revenue $8,200,000

Cost of goods Sold 6,400,000

Gross Profit 1,800,000

Operating expenses (includes $200,000 depreciation expense) 1,250,000

Pretax Income 550,000

Income tax expense (30% rate) 165,000

Net Income $385,000

Balance Sheet

2014 2013

Accounts Receivable $800,000 $600,000

Inventory 520,000 480,000

Prepaid Expenses 110,000 120,000

Accounts Payable 340,000 310,000

Accrued Liabilities 80,000 90,000

Income taxes payable 25,000 40,000

Unearned Revenue 100,000 200,000

REQUIRED:

a. Prepare the operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the indirect method.

b. Preparethe operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the direct method

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