Jordan Electronics, Inc., recognized $6,500 of sales revenue on account and collected $3,900 of cash from accounts receivable. Further, Jordan recognized $2,700 of operating expenses on account and paid $1,600 cash as partial settlement of accounts payable.

Required

1. Prepare the operating activities section of the statement of cash flows under the direct method.

2. Prepare the operating activities section of the statement of cash flows under the indirect method.

Prepare the operating activities section of the statement of cash flows under the direct method. (Cash outflows should be indicated with minus sign.)

Cash Flows from Operating Activities Direct Method
Cash flows from operating activities:
Net cash flow from operating activities

Prepare the operating activities section of the statement of cash flows under the indirect method. (Amounts to be deducted should be indicated with minus sign.)

Cash Flows from Operating Activities Indirect Method
Cash flows from operating activities:
Net cash flow from operating activities