New Vision Company completed its income statement and balance sheet and provided the following information:

Service Revenue		$ 66,400
Expenses:
Salaries and Wages	$ 42,400
Depreciation	7,340
Utilities	6,200
Office	1,740	57,680
Net Income		$ 8,720
Decrease in Accounts Receivable	$ 12,400
Paid cash for equipment	5,200
Increase in Salaries and Wages Payable	9,200
Decrease in Accounts Payable	4,350

1. Present the operating activities section of the statement of cash flows for New Vision Company using the direct method. Assume that Accounts Payable relate to Utilities and Office Expenses on the income statement.
2. If payments for salaries and wages were to increase by 10 percent throughout the year, by what dollar amount and in what direction would operating cash flows change?