Question 1. The following information was taken from the financial records of the XYZ Company.

Particulars	End of Year	Beginning of Year	Change
Cash	$ 23,500	$ 37,400	(13,900)
Accounts receivable (net)	84,500	80,350	4,150
Inventories	100,200	94,300	5,900
Prepaid expenses	4,970	5,300	(330)
Accounts payable (creditors)	71,400	68,900	2,500
Salaries Payable	5,320	6,450	(1,130)

Net Income reported on the income statement for the current year was $134,800. Depreciation expense recorded on buildings and equipment was $27,400 for the year.

Required: Using the indirect method prepare the Cash Flows from Operating Activities section of the Statement of Cash Flows.

Question 2. The following information was taken from the financial records of the W Company.

Particulars	End of Year	Beginning of Year
Cash	$345,000	$386,000
Accounts Receivable	554,300	567,800
Merchandise Inventory	693,000	672,400
Prepaid Expenses	27,000	24,000
Accounts Payable (creditors)	510,000	527,400
Wages Payable	39,500	36,000

The net income reported on the income statement for the current year was $465,000, which included a gain on sale of investments of $3,000. Depreciation expense recorded on store equipment for the year amounted to $99,800.

Required: Using the indirect method prepare the operating activities section