Can you help me with the cash flows?

Required:

1.

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

2.

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013 $ Sales Cost of goods sold 820 (310) Gross margin Salaries expense Depreciati on expense Interest expense Gain on sale of cash equivalents 510 $ 224 182 32 (4) (434) Income before taxes and extraordinar y loss Income tax expense Income before extraordinar y loss Extraordi nary loss (flood damage to inventory) Less: Tax savings 76 (38) 38 12 (6) (6) Net Income $ 32 HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2013 and 2012 Year 2013 2012 Change Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income taxes payable $248 387 896 228 188 71 98 $218 405 868 270 204 58 120 $30 (18) 28 (42) (16) 13 (22) Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Direct Method Cash Flows from Operating Activities: $ Cash received from customers 2 Cash paid to suppliers 2 Cash paid to employees 2 Cash paid for interest 2 Cash paid for income taxes 2 (Click to select) 2 Net cash flows from operating activities $ 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) Indirect Method Cash Flows from Operating Activities: $ Net income Adjustments for noncash effects: Depreciation expense 2 Extraordinary gain 2 Changes in operating assets and liabilities: Decrease in accounts receivable 2 Increase in inventory 2 Decrease in accounts payable 2 Decrease in salaries payable 2 Increase in interest payable 2 Decrease in income taxes payable 2 Net cash flows from operating activities $