Chapter 12 Assignment 1 Part 1 of 2 10 points ! Required information [The following information applies to the questions displayed below.] Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable eBook Print Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next: Income Statement Year 2 $ 20,500 Year 1 $27,000 58,100 48,500 18,000 26,300 25,100 17,700 4,950 4,100 850 2,900 Sales References Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment Net income $ 622,000 (365,000) 257,000 4,400 (39,000 (155,000) (4,700) 62,700 4,900 $ 67,600 Required a. Prepare the operating activities section of the statement of cash flows using the direct method for Year 2. Note: Amounts to be deducted should be indicated with a minus sign. GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash collections from customers for sales Cash collections from customers for services Cash payments for: Net cash flow from operating activities