Portions of the financial statements for Hawkeye Company are provided below.
HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013
Sales			$	960
Cost of goods sold				(380	)
Gross margin				580
Salaries expense	$ 238
Depreciation expense	196
Interest expense	46
Gain on sale of cash equivalents	(4	)		(476	)
Income before taxes and extraordinary loss				104
Income tax expense				(52	)
Income before extraordinary loss				52
Extraordinary loss (flood damage to inventory)	12
Less: Tax savings	(6	)		(6	)
Net Income			$	46
HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2013 and 2012
	Year
	2013	2012	Change
Cash	$224	$206	$18
Accounts receivable	401	433	(32)
Inventory	872	856	16
Accounts payable	216	246	(30)
Salaries payable	186	200	(14)
Interest payable	67	56	11
Income taxes payable	96	116	(20)
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.)
Direct Method
Cash Flows from Operating Activities:
$
Net cash flows from operating activities	$
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.)
Indirect Method
Cash Flows from Operating Activities:
Net income	$
Adjustments for noncash effects:
Changes in operating assets and liabilities:
Net cash flows from operating activities	$