Dauve Company reported the following condensed income statement for 2019:

During 2019, the following changes occurred in the company’s current assets and current liabilities:

Increase (Decrease)
Cash $ 3,700
Accounts receivable (5,500)
Inventories 8,900
Accounts payable (purchases) (4,600)
Salaries payable 2,800
Required:
1. By visual inspection, prepare the net cash flow from the operating activities section of Dauve’s 2019 statement
of cash flows using the indirect method.
2. By visual inspection, prepare the net cash flow from the operating activities section of Dauve’s 2019 statement
of cash flows using the direct method.

$100,000 (58,000) $ 42,000 Sales Cost of goods sold Gross profit Operating expenses: Depreciation expense Salaries expense $ 8,000 12,000 (20,000) $ 22,000 (6,600) $ 15,400 Income before income taxes Income tax expense Net income