Jordan Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Jordan'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 $23,100 56,400 17,500 23,300 4,800 650 Year 1 $28,300 51,000 25,700 17,300 3,900 2,750 The Year 2 income statement is shown below: Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net Income $ 607,000 (377,000) 230,000 5.800 (39,000) (142.000) (4,800) 50,000 4.400 $ 54,400 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. 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 catem cash flows using the direct method. (Cash outflows should be nces Prepare the operating activities section of the indicated with minus sign.) JORDAN 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 Cash collections from customers for services ISIS B 12 o 88 TL 1931 SIST flow from operating activities S 0 Prey 1 of 10 !!! Nav 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.) JORDAN 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 operating activities