(b) Cash lows from operating activition EXERCISES EX. 17-1 (S.O. 3 and 6) Lafave Inc., a service company, has the f at December 31, 2009 2008 S 61,000 Balance Sheets 2009 83,000 78,000 12,000 92,000 Cash Prepaid expenses 87,000 13,000 Income taxes payable Income statement for 2009 Sales revenues $173,000 Income before income taxes Income tax expense Net income 6.000 $ 7.000 Operating expenses include $4,000 of depreciation expense Instructions (a) Using the direct method, prepare the operating activities section of the statement of cash (b) Using the indirect method, prepare the operating activities section of the statement of cash flows for 2009