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

ORIOLE INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2020 AND 2019
		December 31
Debit Accounts		2020		2019
Cash		$42,200		$33,700
Accounts Receivable		70,800		60,200
Inventory		30,000		24,300
Equity investments		22,400		38,300
Machinery		30,100		18,800
Buildings		67,000		56,100
Land		7,500		7,500
		$270,000		$238,900
Credit Accounts
Allowance for Doubtful Accounts		$2,200		$1,500
Accumulated Depreciation—Machinery		5,700		2,300
Accumulated Depreciation—Buildings		13,600		9,000
Accounts Payable		35,100		24,700
Accrued Payables		3,300		2,600
Long-Term Notes Payable		21,200		31,000
Common Stock, no-par		150,000		125,000
Retained Earnings		38,900		42,800
		$270,000		$238,900

Additional data (ignoring taxes):

1.		Net income for the year was $42,400.
2.		Cash dividends declared and paid during the year were $21,300.
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 $24,800 were sold during the year for $28,500. No unrealized gains and losses were recorded on these investments in 2020.
5.		Machinery that cost $3,800, on which $750 of depreciation had accumulated, was sold for $2,250.

Oriole’s 2020 income statement follows (ignoring taxes).

Sales revenue					$541,000
Less: Cost of goods sold					381,800
Gross margin					159,200
Less: Operating expenses (includes $8,750 depreciation and $5,735 bad debts)					119,700
Income from operations					39,500
Other: Gain on sale of investments		$3,700
Loss on sale of machinery		(800	)		2,900
Net income					$42,400

(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).)

ORIOLE INC.
Statement of Cash Flows

(Indirect Method)

		$
Adjustments to reconcile net income to

	$

$