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

HAWKEYE COMPANY

Income Statement

For the Year Ended December 31, 2013

Sales $ 870

Cost of goods sold (335 )

Gross margin 535

Salaries expense $ 229

Depreciation expense 187

Interest expense 37

Gain on sale of cash equivalents (4 ) (449 )

Income before taxes and extraordinary loss 86

Income tax expense (43 )

Income before extraordinary loss 43

Extraordinary loss (flood damage to inventory) 10

Less: Tax savings (5 ) (5 )

Net Income $ 38

HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2013 and 2012

Year 2013 2012 Change

Cash $238 $213 $25

Accounts receivable 392 415 (23)

Inventory 886 863 23

Accounts payable 223 260 (37)

Salaries payable 183 194 (11)

Interest payable 61 53 8

Income taxes payable 93 110 (17)

Required: 1. 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.)

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.)