The following accounts and corresponding balances were drawn from Thornton Companys Year 2 and Year 1 year-end balance sheets.

Account Title	Year 2			Year 1
Accounts receivable	$	73,700		$	80,300
Prepaid rent		520			930
Utilities payable		1,790			1,020
Other operating expenses payable		31,400			34,400

The Year 2 income statement is shown as follows.

Income Statement
Sales	$	297,000
Rent expense		(23,000	)
Utilities expense		(35,800	)
Other operating expenses		(166,400	)
Net Income	$	71,800

Required

1. Prepare the operating activities section of the statement of cash flows using the direct method.

2. Prepare the operating activities section of the statement of cash flows using the indirect method.