Podracer Productions provides the following income statement for the year ended December 31, 2011:
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,530,600
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 895,400
Gross margin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 635,200
General expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255,400
Depreciation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,500
Salaries expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114,300
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 242,000
Interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,250
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (12,500)
Loss on sale of equipment . . . . . . . . . . . . . . . . . . . . . . . . . (9,500)
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . $ 237,250
Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,500
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1 51,750
In addition, Podracer provides the following balance sheet information:

Instructions:
Using the simultaneous analysis matrix illustrated in the text, prepare the Operating Activities section of the statement of cash flows using (1) the direct method and (2) the indirectmethod.

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Dec. 31, 2011 Dec. 31, 2010 $250.400 2,100 74,300 7,600 39,500 19,500 $225,400 Interest receivable 59,550 Prepaid general expenses Accounts payable Accrued general expenses Interest payable Income taxes payable Salaries payable 4,000 21,750 9,750 11,500 9,850 5,400