Perez Brands, Inc., presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Perez'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 $21,600 57,500 17.000 25,600 4.900 850 Year 1 $27.400 50,100 27,700 16,600 4,000 2,700 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 $ 618,000 (371.000) 247,000 4,400 (39,000) (159,000) (4,500) 48,900 4,000 $ 52.900 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 Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be Indicated with minus sign.) PEREZ 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 Cash payments for Net cash fow from operating activities Required 8 > 4. $ 52,900 income sale of equipment Ome pare the operating activities section of the statement of cash flows using the di epare the operating activities section of the statement of cash flows using the indirect me Complete this question by entering your answers in the tabs below. Required B Required A Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be should be indicated with a minus sign.) PEREZ 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