Help Save CA Problem 14-14A (Algo) The direct versus the indirect method of determining cash flow from operating activities LO 14-1, 14-2 Fanning Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Fanning's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $20,600 $27.600 Merchandise inventory 56,600 50.600 Prepaid insurance 16,000 24,100 Accounts payable 26,600 18,900 Salaries payable 4,750 4,200 Unearned service revenue 950 2,750 The Year 2 income statement is shown below: Income statement Sales $ 619,000 Cost of goods sota 4370,000) Grossargin 24100 Service revenue 5,200 Insurance expense 39.000 Salaries expense 155.000 Depreciation expense (100) Operating income Gain on sale of equipment 4300 Net Income $ 51,400 Required e. Prepare the operating activities section of the statement of cash flowing the direct method b. Prepare the operating activities secton of the statement of cash flows using the indirect method 47.100 Cornute that by entering your own in the taste Row 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. Required A Required B Prepare the operating activities section of the statement of cash flows wing the direct method. (Cash outflows should be indicated with minus sign) FANNING BRANDS, INC. itement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities Cash Collections from customers for sales Cash collections from customers for services Cash payments for Net canh flow from operating de $ o Red > Complete this question by entering your ans as in the tabs below. Required A Required 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.) FANNING BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Add Deduct Add: noncash expenses Net cash flow from twing activities 5 0 Help Save CA Problem 14-14A (Algo) The direct versus the indirect method of determining cash flow from operating activities LO 14-1, 14-2 Fanning Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Fanning's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable $20,600 $27.600 Merchandise inventory 56,600 50.600 Prepaid insurance 16,000 24,100 Accounts payable 26,600 18,900 Salaries payable 4,750 4,200 Unearned service revenue 950 2,750 The Year 2 income statement is shown below: Income statement Sales $ 619,000 Cost of goods sota 4370,000) Grossargin 24100 Service revenue 5,200 Insurance expense 39.000 Salaries expense 155.000 Depreciation expense (100) Operating income Gain on sale of equipment 4300 Net Income $ 51,400 Required e. Prepare the operating activities section of the statement of cash flowing the direct method b. Prepare the operating activities secton of the statement of cash flows using the indirect method 47.100 Cornute that by entering your own in the taste Row 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. Required A Required B Prepare the operating activities section of the statement of cash flows wing the direct method. (Cash outflows should be indicated with minus sign) FANNING BRANDS, INC. itement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities Cash Collections from customers for sales Cash collections from customers for services Cash payments for Net canh flow from operating de $ o Red > Complete this question by entering your ans as in the tabs below. Required A Required 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.) FANNING BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Add Deduct Add: noncash expenses Net cash flow from twing activities 5 0