The following accounts and corresponding balances were drawn from Jogger Company's 2017 and 2016 year-end balance sheets:
| ACCOUNT TITLE |
2017 |
2016 |
| ACCOUNTS RECEIVABLE |
57,000 |
62,000 |
| PREPAID RENT |
1,100 |
1,300 |
| UTILITIES PAYABLE |
900 |
750 |
| OTHER OPERATING EXPENSES PAYABLE |
21,300 |
22,400 |
The 2017 income statement is shown below:
INCOME STATEMENT
Sales 268,000
Rent expense (36,000)
Utilities expense (18,300)
Other operating expenses (79,100)
NET INCOME 134,600
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