The following accounts and corresponding balances were drawn from Geneses Company's 2017 and 2016 year-end balance sheets:
Account Title 2017 2016
Accounts receivable..........................$65,000........... $72,000
Prepaid rent..................................... 1,400............... 1,950
Utilities payable....................................... 3,200............... 3,800
Other operating expenses payable............ 27,000............. 31,500
The 2017 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 indirect method.