P21-9 Cash flows from operating activities (direct method and indirect method)-cash equivalent LO21-3, LO21-4 Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2021 908 Sales 976 1046 1104 1170 Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other income (expense): Gain on sale of cash equivalents 1214 A-2 8-0 Interest expense Income before tax Income tax expense Net income ($ in millions) $900 350 550 $232 190 12 434 116 QA P (40) 80 40 $40 page 1282 1281 /1293 > E Schedul 908 976 Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 Year 2021 2020 Change 046 Cash $212 $200 $12 104 Accounts receivable 395 421 (26) Inventory 860 850 10 Accounts payable 210 234 (24) 170 Salaries payable 180 188 (8) Interest payable 55 50 5 214 10 Income tax payable 90 104 (14) A-2 B-0 (40) 80 80 40 $ 40 page 1282 Required: 1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. 2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. tv MacBook Air NA All 1281 /1293