The following accounts and corresponding balances were

Question

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 indirect method.