Portions of the financial statements for Hawkeye Company are provided below.

HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2018
Sales				$	810
Cost of goods sold					305
Gross margin					505
Operating expenses:
Salaries	$	223
Depreciation		181
Loss on sale of land		10
Total operating expenses					414
Operating income					91
Other income (expense):
Gain on sale of cash equivalents					4
Interest expense					(31	)
Income before tax					64
Income tax expense					32
Net income				$	32

HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2018 and 2017
	Year
	2018			2017			Change
Cash	$	250		$	219		$	31
Accounts receivable		386			403			(17	)
Inventory		898			869			29
Accounts payable		229			272			(43	)
Salaries payable		189			206			(17	)
Interest payable		73			59			14
Income taxes payable		99			122			(23	)

Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method.

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Amounts to be deducted should be indicated with a minus sign.)

REQ 1

Cash Flows from Operating Activities:
Cash received from customers	$827
Cash paid to suppliers
Cash paid to employees
Cash paid for interest
Cash paid for income taxes
Net cash flows from operating activities	$827

Complete this question by entering your answers in the tabs below.

Required 1

Required 2

Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

REQ 2

Cash Flows from Operating Activities:
Net income
Adjustments for noncash effects:
Depreciation expense
Changes in operating assets and liabilities:
Net cash flows from operating activities	$0