The following accounts and corresponding balances were drawn from Geneses Company€™s 2014 and 2013 year-end balance sheets:

The 2014 income statement is shown below:
Income Statement
Sales .......... $420,000
Rent expense ....... (52,000)
Utilities expense ...... (45,300)
Other operating expenses . (195,000)
Net income ........ $127,700

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 indirectmethod.

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Account Title 2014 2013 Accounts receivable Prepaid rent Utilities payable Other operating expenses payable $65,000 1,400 3,200 27,000 $72,000 1,950 3,800 31,500