Required:

1.

Prepare the journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

1. a Record the service revenue of $170 for cash and $80 on account.

1. b Record the depreciation expense of $100.

2. Calculate the amount that should be reported as net cash flow from operating activities.

3. Calculate the amount that should be reported as net income

4. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2). (Amounts to be deducted should be indicated with a minus sign.) -net income: -depreciation: -Increase in accounts receivable -Net cash flow from operating activities