On January 2, 20x5, Abigail Co. sold inventory to a customer on the following terms:

$200,000 payable for 5 years on December 31 of each year (i.e. the first payment is due on December 31, 20x5). Abigail's incremental borrowing rate is 5% and the customer's incremental borrowing rate is 6.5%.

What is the impact of the above on the Statement of Cash Flow for the year ended December 31, 20x5.

What is the impact on cash flow from operations for both the indirect and direct methods.