Homework 5 -- Statement of Cash Flows I. Calculating Cash Flow. Kaplan Company's income statement for 20x2 showed sales revenues of $1,280, cost of goods sold of $960, and depreciation of $ 100, yielding a net income of $220. Its balance sheets at the beginning and end of the year showed the following amounts, among others: Beginning End of of Year Year Merchandise inventory ..... $14 $19 Accounts payable... $ 3 Accounts receivable $18 $ 9 $20 Required: Calculate the amount of cash flow from operating activities using both the direct and indirect methods