Presented below is the income statement of Gregg, Inc. for the year ended 12/31/20:

Sales$380,000

Cost of goods sold225,000

Gross profit$155,000

Operating expenses95,000

Income before income taxes60,000

Income taxes24,000

Net income$36,000

In addition, the following selected balance sheet information is also provided for 12/31/19 & 12/31/20

Cash$112,000$100,000

Trade accounts receivable (net)$55,000$45,000

Inventories$80,000$99,400

Salaries payable$27,000$35,000

Trade accounts payable$50,000$41,000

Income tax payable$ 11,000$14,000

The company also indicates that depreciation expense for the year was $13,700 (already incorporated into the $36,000 of net income presented) and that the deferred tax liability account increased $2,600.

Required:

(a)Prepare a schedule computing the net cash flow from operating activities that would be shown on

Gregg's statement of cash flows using the indirect method.

(b)Calculate the cash received from customers, cash paid to suppliers, and cash paid for income taxes ifGregg were to prepare the statement of cash flows under the direct method.