Use the information from E9-21A to prepare the cash from operating activities section of the statement of cash flows using the indirect method. Then, compare it with the statement you prepared for E9-21A. What are the similarities? What are the differences? Which statement do you find mostinformative?

Hargrove Dynamics, Inc. Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin Operating expenses Wages... kent. . Utilities Insurance. Net income $120,000 . 40,000 80,000 ...$ 7,500 10,200 4,800 1,500 24,000 56,000 Selected accounts from the balance sheet: Account Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable Utilities payable Beginning of the Year 5,000 32,000 1,500 12,000 1,850 End of the Year $15,000 12,500 500 17,500 1,600 500