II. Preparation of statement of cash flows operating activities (26 points) Snohomish Corporation's comparative financial statements and supporting information included the following amounts for the year ended December 31, 2020:

Depreciation expense $102,000

Loss on sale of fixed assets 38,000

Decrease in fixed assets 155,000

Proceeds from bank borrowing 34,000 Increase in accounts receivable 37,000

Income tax expense 300,000

Decrease in accounts payable 42,000

Purchase of patent 41,000

Sales revenue 2,420,000

Decrease in inventory 65,000

Selling and general expenses 430,000

Increase in taxes payable 19,000

Cost of goods sold 830,000

Net income 720,000

A. In good form, prepare the operating activities section of the statement of cash flows using the indirect method.

B. In good form, prepare the operating activities section of the statement of cash flows using the direct method.