= Decrease in accounts payable Decrease in accounts receivable Decrease in merchandise inventory Decrease in prepaid insurance Plus: noncash expenses 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. Complete this question by entering your answers in the tabs below. Required A Prepare the operating activities section of the statement of cash flows using the indirect method. Note: Amounts to be deducted should be indicated with a minus sign. Note: Cash outflows should be indicated with minus sign. 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. Depreciation Insurance Inventory Revenue Increase in accounts receivable Increase in merchandise inventory Increase in prepaid insurance Increase in salaries payable Increase in unearned service revenue Plus: noncash expenses Net cash flow from operating activities Requicili Jordan Brands, Incorporated, presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from Jordan's Year 2 and Year 1 year-end balance sheets. Assume that Accounts Payable is used for purchases of inventory only. The Year 2 income statement is shown below: Decrease in unearned service revenue Increase in accounts payable Increase in accounts receivable Increase in merchandise inventory Increase in prepaid insurance Plus: noncash expenses Net cash flow from operating activities