Following is the income statement for JKL Limited.

Additional information: 

a. All sales were on credit.

b. Accounts receivable decreased by $2000 during the year,

c. All stock purchases were on credit.

d. Inventory increased by $1800.

e. Accounts payable decreased by $3100 during the year.

f. Income taxes payable increased by $600 during the year.

g. All operating expenses are paid in cash in the year incurred. Prepare a schedule of cash flows from operating activities using:
1. The direct method

2. The indirect method.

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JKL LIMITED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 $ Sales Less: Cost of goods sold Gross profit Operating expenses Depreciation Operating profit before income tax Income tax expense Net profit after tax 2200 1400 $ 13 000 6000 7000 3 600 3 400 1100 2300