Exercise 12-7A (Algo) The direct versus the indirect method of determining cash flows from operating activities LO 12-1, 12-2 The following accounts and corresponding balances were drawn from Jogger Company's Year 2 and Year 1 year-end balance sheets. Year 2 $73,300 770 Year 1 $78,600 1,800 32,900 Account Title Accounts receivable Prepaid rent Utilities payable Other operating expenses payable The Year 2 income statement is shown next. Sales Rent expense DI Income Statement Utilities expense Other operating expenses Net Income Required 4 a. Prepare the operating activities section of the statement of cash flows using the direct method. b. Prepare the operating activities section of the statement of cash flows using the indirect method. Required A $277,000 (23,800) (36,200) (167,300) $49,700 Complete this question by entering your answers in the tabs below. Required B 920 1,140 34,300 Indirect Method Cash flow from operating activities: Net income Prepare the operating activities section of the statement of cash flows using the indirect method. (Cash outflows should be indicated with a minus sign.)

Exercise 12-7A (Algo) The direct versus the indirect method of determining cash flows from operating activities LO 12-1, 12-2 The following accounts and corresponding balances were drawn from Jogger Company's Year 2 and Year 1 year-end balance sheets The Year 2 income statement is shown next Required a. Prepare the operating activities section of the statement of cash flows using the direct method b. Prepare the operating activities section of the statement of cash flows using the indirect method Complete this question by entering your answers in the tabs below. Propare the operating activities section of the statement of cash flows using the indirect method. (Cash outfows should be indicated with a minus sign.)