Following is an income statement for Claims Corporation for the year ended December 31, 2011, and a schedule listing the company's current assets and current liabilities at the end of 2010 and 2011.
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Required:
a. Prepare a schedule documenting Claims Corporation's net cash flow from operating activities for the year ended December 31, 2011, using the indirect method.
b. Prepare a schedule documenting Claims Corporation's net cash flow from operating activities for the year ended December 31, 2011, using the direct method. Assume that selling and general expenses are related to both prepaid expenses and accrued liabilities.