Comparative balance sheet accounts of Marcus Inc. are presented below. MARCUS INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2014 AND 2013 December 31 Debit Accounts 2014 2013 Cash $41,620 $33,530 Accounts Receivable 70,230 59,520 Inventory 29,670 24,240 Investments (available-for-sale) 22,480 38,420 Machinery 30,220 18,550 Buildings 67,180 55,820 Land 7,940 7,940 $269,340 $238,020 Credit Accounts Allowance for Doubtful Accounts $2,760 $1,370 Accumulated DepreciationMachinery 6,300 2,140 Accumulated DepreciationBuildings 13,650 8,820 Accounts Payable 35,420 24,560 Accrued Payables 3,076 2,752 Long-Term Notes Payable 20,840 30,790 Common Stock, no-par 149,600 124,500 Retained Earnings 37,694 43,088 $269,340 $238,020 Additional data (ignoring taxes): 1. Net income for the year was $41,086. 2. Cash dividends declared and paid during the year were $21,380. 3. A 20% stock dividend was declared during the year. $25,100 of retained earnings was capitalized. 4. Investments that cost $25,310 were sold during the year for $28,790. 5. Machinery that cost $3,540, on which $743 of depreciation had accumulated, was sold for $1,951. Marcuss 2014 income statement follows (ignoring taxes). Sales revenue $538,102 Less: Cost of goods sold 379,090 Gross margin 159,012 Less: Operating expenses (includes $9,733 depreciation and $5,410 bad debts) 120,560 Income from operations 38,452 Other: Gain on sale of investments $3,480 Loss on sale of machinery (846 ) 2,634 Net income $41,086 (a) Compute net cash flow from operating activities using the direct method. (b) prepare a statement of cash flows using the indirect method