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

Sales revenue		$ 383,000
Cost of goods sold		229,000
Gross profit		$ 154,000
Operating expenses		96,200
Income before income taxes		57,800
Income taxes		24,900
Net income		$ 32,900

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

		Debit		Credit
Cash		$ 12,600
Accounts receivable		25,700
Inventories				$ 19,300
Salaries payable (operating expenses)		7,600
Accounts payable				13,100
Income taxes payable		3,300

The company also indicates that depreciation expense for the year was $ 16,700 and that the deferred tax liability account increased $ 2,700.

(a)

Prepare a schedule computing the net cash flow from operating activities by using the indirect method that would be shown on a statement of cash flows. (Show amounts that decrease cash flow with either a - sign e.g. -10,000 or in parenthesis e.g. (10,000).)

Linda, Inc. Statement of Cash Flows (Partial) (Indirect Method)

(b)

Prepare a schedule computing the net cash flow from operating activities by using the direct method that would be shown on a statement of cash flows.

Linda, Inc. Statement of Cash Flows (Partial) Direct Method