The following combined income and retained earnings statement, along with selected balance sheet data, are provided for Roper Company:

1. Using the indirect method, compute the net cash flows from operations for Roper Company for 2000 .
2. Using the direct method, compute the net cash flows from operations for Roper Company for 2000 .
3. What is the impact of dividends paid on net cash flows from operations? Explain.

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Roper Company Combined Income and Retained Earnings Statement For the Year Ended December 31, 2000 Net sales revenue. Other revenues.. Total revenues. Expenses: Cost of goods sold... Selling and administrative expenses Depreciation expense... Interest expense Total expenses. Income before taxes Income taxes Net income... Retained earnings, January 1, 2000.. Dividends declared and paid... Retained earnings, December 31, 2000 'Gain on sale of equipment (Cost $9,500; book value, $6,000; sales price $10,500), Accounts receivable (net) Inventory Prepaid expenses. Accounts payable. Interest payable. Income taxes payable. $85,000 4,500' $89,500 $51,000 14,700 3,200 1,400 70,300 $19,200 5,760 $13,440 33,500 $46,940 2,500 $44,440 Beginning of Year End of Year $10,500 $11,000 19.300 18,000 950 700 7,200 8,000 1,500 1,000 500 2,500