Walton Brands, Inc., presents its statement of cash flows using the Indirect method. The following accounts and corresponding balances were drawn from Walton's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue Year 2 $20,400 59,300 18,000 26,000 4,900 880 Year 1 $29,200 51,000 27,800 18,600 3,950 2,750 The Year 2 income statement is shown below: 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 $ 619,000 (364,800) 255,000 4,500 (38,000) (154,000) (4,300) 63,200 3,500 $ 66,780 Required 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. Required information Problem 12-14 The DevelChem Week 6 HW (Chapter 10&14) Required Help Save & Ex 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. Complete this question by entering your answers in the tabs below. 0.6 points Required A Required B Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be Indicated with minus sign.) WALTON BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash collections from customers for sales Cash collections from customers for services Cash payments for: Net cash flow from operating activities Required B > 1 Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) WALTON BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Net income Add: ences Deduct: Add: noncash expenses Net cash flow from operating activities