Zena Company's accountants just completed the financial statements for the year and have provided the following information (in thousands): Statement of Earnings for 2020 Sales revenue Expenses and losses: $20,600 Cost of sales $9,000 Depreciation 2,000 Salaries 5,000 Rent 2,500 Insurance 800 Utilities 700 Interest 600 20,600 Net earnings 0 Selected Statement of Financial Position Accounts 2020 2019 Merchandise inventory $82 $ 60 Accounts receivable 380 450 Accounts payable 240 210 Salaries payable 29 20 Rent payable 2 Prepaid rent 2 69 6 Prepaid insurance 14 5 In addition, the company signed long-term notes for $20,000 during the year. Required 1. Prepare the operating activities section of the statement of cash flows for 2020 by using the indirect method. 2. As a financial analyst, would you prefer to see the cash flow from operations reported using the direct method or the indirect method? Justify your answer. Page 201 3. As the accountant who prepares the company's statement of cash flows, would you prefer to use the direct or the indirect method to report the cash flow from operations? Explain.