Comparative balance sheet accounts of Indigo Inc are presented below INDIGO INC COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31 Debit Accounts 2020 2019 Cash $41,900 $34,100 Accounts Receivable 70,400 60,300 Inventory 29,900 24,000 Equity investments 22,100 38,300 Machinery 30,200 18,900 Buildings 67,900 56,800 Land 7,400 7,400 $269,800 $239,800 Credit Accounts Allowance for Doubtful Accounts $2,200 $1,500 Accumulated DepreciationMachinery 5,600 2,200 Accumulated DepreciationBuildings 13,400 8,900 Accounts Payable 35,300 24,700 Accrued Payables 3,400 2,600 Long Term Notes Payable 21,000 30,800 Common Stock, no par 150,000 125,000 Retained Earnings 38,900 44,100 $269,800 $239,800 Additional data (ignoring taxes) 1 Net income for the year was $40,900 2 Cash dividends declared and paid during the year were $21,100 3 A 20 stock dividend was declared during the year $25,000 of retained earnings was capitalized 4 Equity investments (level of ownership is less than 20 ) that cost $25,200 were sold during the year for $29,000 No unrealized gains and losses were recorded on these investments in 2020 5 Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150 Indigos 2020 income statement follows (ignoring taxes) Sales revenue $538,000 Less Cost of goods sold 380,200 Gross margin 157,800 Less Operating expenses (includes $8,650 depreciation and $5,364 bad debts) 119,900 Income from operations 37,900 Other Gain on sale of investments $3,800 Loss on sale of machinery (800 ) 3,000 Net income $40,900 (a) Compute net cash flow from operating activities using the direct method (Enter negative amounts using either a negative sign preceding the number e g 45 or parentheses e g (45) ) Net cash flow from operating activities $ (b) Prepare a statement of cash flows using the indirect method (Show amounts that decrease cash flow with either a sign e g 15,000 or in parenthesis e g (15,000) )

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Comparative balance sheet accounts of Indigo Inc. are presented below. INDIGO INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019 December 31

Comparative balance sheet accounts of Indigo Inc. are presented below.

INDIGO INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019
	December 31
Debit Accounts	2020	2019
Cash	$41,900	$34,100
Accounts Receivable	70,400	60,300
Inventory	29,900	24,000
Equity investments	22,100	38,300
Machinery	30,200	18,900
Buildings	67,900	56,800
Land	7,400	7,400
	$269,800	$239,800

Credit Accounts
Allowance for Doubtful Accounts	$2,200	$1,500
Accumulated DepreciationMachinery	5,600	2,200
Accumulated DepreciationBuildings	13,400	8,900
Accounts Payable	35,300	24,700
Accrued Payables	3,400	2,600
Long-Term Notes Payable	21,000	30,800
Common Stock, no-par	150,000	125,000
Retained Earnings	38,900	44,100
	$269,800	$239,800

Additional data (ignoring taxes):

1.		Net income for the year was $40,900.
2.		Cash dividends declared and paid during the year were $21,100.
3.		A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized.
4.		Equity investments (level of ownership is less than 20%) that cost $25,200 were sold during the year for $29,000. No unrealized gains and losses were recorded on these investments in 2020.
5.		Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150.

Indigos 2020 income statement follows (ignoring taxes).

Sales revenue			$538,000
Less: Cost of goods sold			380,200
Gross margin			157,800
Less: Operating expenses (includes $8,650 depreciation and $5,364 bad debts)			119,900
Income from operations			37,900
Other: Gain on sale of investments	$3,800
Loss on sale of machinery	(800	)	3,000
Net income			$40,900

(a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Net cash flow from operating activities

(b) Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)