Required information Problem 12-14A The direct versus the indirect method of determining cash flow from operating activities LO 12-1, 12-2 The following information applies to the questions displayed below] Green Brands, Inc. (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBl's Year 2 and Year 1 year-end balance sheets: Account Title Year 2 Year 1 Accounts receivable 23.000 29,00e 49,400 Merchandise inventory Prepaid insurance 56, 200 17,60e 27,80e Salaries payable 4,650 4,000 Unearned service revenue 1,0ee 2,750 The Year 2 income statement is shown next Income Statement $ 623,eee (378,eee) Sales Cost of goods sold Gross margin 245,eee ue (39, 000) Insurance expense Salaries expense Depreciation expense Operating income Gain on sale of equipment (153,eee) (4,50e) 54,300 3,10e Net income $57,400 Problem 12-14A Part a Required a. Prepare the operating activities section of the statement of cash flows using the direct method for Year 2. (Amounts to be deducted should be indicated with a minus sign.) GREEN BRANDS, INC. 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 0 b. Prepare the operating activities section of the statement of cash flows using the indirect method for Year 2. (Amounts to be deducted should be indicated with a minus sign.) GREEN BRANDS, INC. Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: INet income Add: Deduct: Add: noncash expenses Net cash flow from operating activities