Green Brands, Inc. (GBI), presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBIs 2017 and 2016 year-end balance sheets.

Account Title	2017			2016
Accounts receivable	$	23,500		$	29,500
Merchandise inventory		56,800			51,200
Prepaid insurance		16,700			27,000
Accounts payable		24,600			18,800
Salaries payable		4,900			4,050
Unearned service revenue		800			3,000

The 2017 income statement is shown below:

Income Statement

Sales

$

605,000

Cost of goods sold

(381,000

)

Gross margin

224,000

Service revenue

4,000

Insurance expense

(39,000

)

Salaries expense

(158,000

)

Depreciation expense

(5,700

)

Operating income

25,300

Gain on sale of equipment

3,900

Net income

$

29,200

Required

a.

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

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