Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $ 22,800 59,700 15,900 25,100 4,950 950 Year 1 $ 29,300 51,800 27,800 18,400 4,150 2,700 The Year 2 income statement is shown next: Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment $ 616,000 (364,000) 252,000 4,500 (39,000) (145,000) (5,700) 66,800 4,600 $ 71,400 Net income a. Prepare the operating activities section of the statement of cash flows using the direct metho Year 2. (Amounts to be deducted should be indicated with a minus sign.) GREEN BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash collections from customers for sales $ 622,500 Cash collections from customers for services 2,750 Cash payments for: Inventory (365,200) Insurance (27,100) Salaries (144,200) Net cash flow from operating activities $ 88,750