Problem 13 - Cash Flows, Operating Activities - Direct & Indirect Requirements: Prepare the operating activities section of the Statement of Cash Flows using (1) the direct method and (2) the indirect method for the Beet Company Balance Sheet December 31, Year 2 Year 1 Cash 2 3 Accounts receivable 2 5 Inventory B Plant and equipment 40 30 Accumulated depreciation (27) Total assets 25 20 6 (24) Accounts payable Accrued liabilities Common stock Retained earnings Total liabilities and owners' equity 1 6 10 8 25 5 4 10 1 20 Income Statement Sales Less cost of goods sold Gross margin Less operating expenses Net Income 3 70 (50) 20 (10) 10 Problems 13-B Statement of Cash Flows Requirements: For the Spinach Company, for the year ended December 31 of Year 2, prepare: 1) A Statement of Cash Flows, using the Direct Method, showing cash flows from operating, Investing and financing activities. 2) The operating section of the Statement only, using the Indirect Method