Hockey Apparel Providers, Inc. provided the following information for the current year.
Simplified Income Statement Amount
Sales………………………………………………$ 2,452,000
Cost of Goods Sold……………………………… (251,000)
Depreciation Expense……………………………. (178,000)
Selling, General, and Administrative Expenses….. (558,000)
Operating Income………………………………… 465,000
Tax Expense………………………………………. (145,000)
Net Income……………………………………….. $ 320,000
Account Changes from the Balance Sheet
Decrease in Accounts Receivable………………… $ 29,000
Decrease in Inventory…………………………….. $ 43,000
Increase in Prepaid Expenses…………………….. $ 9,000
Decrease in Accounts Payable……………………. $ 34,000
Increase in Income Taxes Payable………………... $ 32,000
Required
a. Compute cash flows from operating activities for Hockey Apparel Providers under the indirect reporting format.
b. Compute cash flows from operating activities for Hockey Apparel Providers under the direct reporting format.