Exercise 2: Shown below is information from the financial statements of Tyler Company for 2019: End of Year Accounts receivable 201,000 Inventory 249,000 Short-term prepayments 12,000 Accounts payable (for merchandise) 177,000 Accrued operating expenses payable 25,500 Accrued income taxes payable 12,600 Net sales 801,000 Cost of goods sold 465,000 Operating expenses (including depreciation of 40,000) 300,000 Income taxes expense 39,000 Beginning of Year 221,000 233,000 9,500 170,000 33,200 15,500 Instructions: a. On the basis of the above information, prepare a partial statement of cash flows for Tyler Company, showing the computation of net cash flows from operating activities by the indirect method. (15 points) b. Identify three factors that may cause net income to differ from net cash flows from operating activities. (10 points) C. Briefly explain the difference between the direct and indirect methods of computing net cash flows from operating activities. Which method results in higher net cash flows? (10 points)