[The following information applies to the questions displayed below.] Suppose your company sells services of $330 in exchange for $210 cash and $120 on account. Depreciation of $140 relating to equipment is also recorded.

3.

value: 7.69 points

Required information

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.)

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4.

value: 7.69 points

Required information

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.)