Presented below is the income statement of Gregg, Inc.:

Sales $380,000

Cost of goods sold 225,000

Gross profit $155,000

Operating expenses 95,000

Income before income taxes Income taxes 60,000

Income taxes 24,000

Net income $ 36,000

In addition, the following information related to net changes in working capital is presented:

Debit Credit

Cash $12,000

Trade accounts receivable (net) 10,000

Inventories $ 19,400

Salaries payable (operating expenses) 8,000

Trade accounts payable 9,000

Income tax payable 3,000

The company also indicates that depreciation expense for the year was $13,700 (included in operating expenses) and that the deferred tax liability account increased $2,600.

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.