Use the following income statement and information about changes in non-cash current assets and current liabilities to present the cash flows from operating activities using the direct method:

Changes in current asset and current liability accounts during the year were as follows:

Accounts receivable .................................... $10,800 increaseMerchandise inventory ................................... 7,200 increaseAccounts payable............................................ 3,600 decreaseSalaries payable .............................................. 1,200 decrease

Analysis Component: Use the information above to present the cash flows from operating activities using the indirect method. Explain the differences and similarities between the direct and indirect methods.

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Opal Resources Corp. Income Statement For Year Ended December 31, 2020 $484,800 Sales. Cost of goods sold. Gross profit from sales. 237,600 $247,200 Operating expenses: Salaries expense $66,276 ..... Depreciation expense Rent expense. 11,520 9,760 1,440 Amortization expense, patents. Utilities expense 5,100 ...... Total operating expenses. 94,096 Gain on sale of equipment. 1,920 Profit from operations. $155,024 Income taxes. 3,200 Profit. $151,824