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Saved 1 Required intormation [The following information applies to the questions displayed below.) Green Brands, Inc. (GBI) presents its statement of cash flows using the
Saved 1 Required intormation [The following information applies to the questions displayed below.) Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Part 1 of 2 10 points Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $ 20,800 56,500 16,300 26,600 4,850 650 Year 1 $ 26, 200 50, 300 25,700 16,900 3,900 2,900 eBook Ask The Year 2 income statement is shown next: Print References Income Statement Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income $ 615,000 (367,000) 248,000 5,000 (40,000) (159, 000) (5,100) 48,900 4,900 $ 53,800 Required a. Prepare the operating activities section of the statement of cash flows using the direct method for Year 2. (Amounts to be deducted should be indicated with a minus sign.)
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