Presented below is the income statement of Foley, Inc.: Sales Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes Net income $380,000 225.000 $155,000 85,000 70,000 28,000 $ 42,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $12,000 Trade accounts receivable 15,000 Inventories $19,400 Salaries payable (operating expenses) 8,000 Trade accounts payable 12,000 Income tax payable 3,000 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,600. Instructions Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method