The following accounts and corresponding balances were drawn from Jogger Company’s Year 2 and Year 1 year-end balance sheets:

The Year 2 income statement is shown next: Income Statement
Sales .......................................................................$268,000
Rent expense ..........................................................(36,000)
Utilities expense .....................................................(18,300)
Other operating expenses ....................................(79,100)
Net Income ...........................................................$134,600

Required
a. Prepare the operating activities section of the statement of cash flows using the direct method.
b. Prepare the operating activities section of the statement of cash flows using the indirect method.

Transcribed Image Text:

Account Title Accounts receivable Prepaid rent Utilities payable Other operating expenses payable Year 2 Year 1 $57,000 1,100 $62,000 1,300 900 21,300 750 22,400