The following accounts and corresponding balances were drawn from Zachary Company's Year 2 and Year 1 year-end balance sheets. Account Title Accounts receivable Prepaid rent Year 2 $ 74,300 Year 1 $ 81,600 550 1,160 1,840 1,180 34,800 Utilities payable Other operating expenses payable The Year 2 income statement is shown as follows. 31,000 Income Statement Sales Rent expense Utilities expense Other operating expenses Net Income Required $ 277,000 (22,300) (36,100) (167,000) $ 51,600 a. Prepare the operating activities section of the statement of cash flows using the direct method. b. Prepare the operating activities section of the statement of cash flows using the indirect method. C