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 $ 48,000 $ 52,000 Merchandise inventory 78,000 72,000 Prepaid insurance 24,000 32,000 Accounts payable 31,000 28,000 Salaries payable 8,200 7,800 Unearned service revenue 2,400 3,600

The 2017 income statement is shown below: Income Statement Sales $ 720,000 Cost of goods sold (398,000 ) Gross margin 322,000 Service revenue 6,000 Insurance expense (36,000 ) Salaries expense (195,000 ) Depreciation expense (12,000 ) Operating income 85,000 Gain on sale of equipment 4,500 Net income $ 89,500

Required Prepare the operating activities section of the statement of cash flows using the direct method. Prepare the operating activities section of the statement of cash flows using the indirect method.