The accountants of Pan American Silver Corp. completed the statement of financial position at June 30, 2012, and the statement of earnings for the quarter ended on that date, and have provided the following information (in thousands of dollars):

Required:
1. Prepare the operating activities section of the statement of cash flows. Use the indirect method.
2. Companies that use the direct method to report cash flows from operations are also required to disclose in the notes a reconciliation of net earnings to cash flows from operating activities. What additional information does this disclosure requirement provide to users of financial statements? Explain.

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Statement of Earnings Sales revenue Gain on sale of assets $200,597 11,220 211,817 Expenses Cost of sales Depreciation and amortization Royafties Exploration and project development General and administration Other (income) loss Interest and financing Income tax $113.959 24,324 6,018 10,976 6107 (19,369) 1.446 24,315 167,776 S 44.041 Net earnings Selected Statement of Financial Position Accounts June 30, 2012 March 31, 2012 Short-term investments Trade receivables Inventories Prepayments Trade payables Accrued liabilities Income taxes payable $161,376 119,509 263,657 9,247 45,740 30,689 15,254 $228,321 103,343 135,696 9,343 30,879 13,199 74.366