Use direct method for part a) to compute net cash flow from operating activities

And use indirect methods for part b statement of cash flows

Comparative balance sheet accounts of Swifty Inc. are presented belovw SWIFTY INC. COMPARATIVE BALANCE SHEET ACCOUNTS AS OF DECEMBER 31, 2017 AND 2016 December 31 Debit Accounts Cash Accounts Receivable Inventory Equity investments Machinery Buildings Land 2017 2016 $34,000 60,300 23,800 38,100 19,000 56,400 7,600 $269,000 $239,200 $42,400 69,800 29,700 22,300 29,700 67,500 7,600 Credit Accounts Allowance for Doubtful Accounts Accumulated Depreciation-Machinery Accumulated Depreciation-Buildings Accounts Payable Accrued Payables Long-Term Notes Payable Common Stock, no-par Retained Earnings $1,500 2,300 9,100 24,800 2,600 30,700 125,000 43,200 $269,000 $239,200 $2,200 5,600 13,500 35,100 3,300 21,000 150,000 38,300 Additional data (ignoring taxes): 1. Net income for the year was $41,300 2. Cash dividends declared and paid during the year were $21,200 3. A 20% stock dividend was declared during the year. $25,000 of retained earnings was capitalized Equity investments (level of ownership is less than 20%) that cost $24,700 were sold during the year for $28,500. No unrealized gains and losses were recorded on these investments in 2017 5. Machinery that cost $3,700, on which $750 of depreciation had accumulated, was sold for $2,150 Swifty's 2017 income statement follows (ignoring taxes). Sales revenue Less: Cost of goods sold Gross margin Less: Operating expenses (includes $8,450 depreciation and $4,890 bad debts) Income from operations Other: Gain on sale of investments $539,900 380,400 159,500 121,200 38,300 $3,800 (800) 3,000 $41,300 Loss on sale of machinery Net income (a) Compute net cash flow from operating activities using the direct method. (Enter negative amounts using either a negative sign Net cash flow from operating activities SWIFTY INC. Statement of Cash Flows For the Year Ended December 31, 2017 (Indirect Method) Cash Flows from Operating Activities Net Income Adjustments to reconcile net income to Net Cash Provided by Operating Activities Depreciation Expense Gain on Sale of Investments Gain on Sale of Investments Loss on Sale of Machinery Increase in Accrued Payables Increase in Inventory Increase in Accounts Payable Net Cash Provided by Operating Activities Cash Flows from Investing Activities Sale of Investments Addition to Buildings Sale of Machinery Purchase of Machinery Purchase of Investments Net Cash Used by Investing Activities Cash Flows from Financing Activities Cash Dividends Paid Reduction in Long-term Note Payable* Net Cash Used by Financing Activities