Use the following income statement and information about changes in non$-$cash current assets and current liabilities to present the

cash flows from operating activities using the direct method: $($List any deduction in cash and cash outflows as negative amounts.$)$

Changes in current asset and current liability accounts during the year were as follows: Changes in current asset and current liability accounts during the year were as follows:

OPAL RESOURCES CORP.

Statement of Cash Flows

For Year Ended December $31,2023$ Analysis Component:

Use the information above to present the cash flows from operating activities using the indirect method.Use the following income statement and information about changes in non$-$cash current assets and current liabilities to present the cash flows from operating activities using the direct method: $($List any deduction in cash and cash outflows as negative amounts.$)$

Opal Resources Corp.

Income Statement

For Year Ended December $31,2023$

Sales $ $484,500$

Cost of goods sold $237,400$

Gross profit from sales $ $247,100$

Operating expenses:

Salaries expense $ $65,976$

Depreciation expense $11,510$

Rent expense $9,750$

Amortization expense, patents $1,430$

Utilities expense $4,900$

Total operating expenses $93,566$

Gain on sale of equipment $1,910$

Profit from operations $ $155,444$

Income taxes $3,000$

Profit $ $152,444$

Changes in current asset and current liability accounts during the year were as follows:

Accounts receivable $ $10,600$ increase

Merchandise inventory $7,000$ increase

Accounts payable $3,400$ decrease

Salaries payable $1,000$ decrease

Analysis Component:

Use the information above to present the cash flows from operating activities using the indirect method.