Use the information from E9-36B 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 E9-36B. What are the similarities? What are the differences? Which statement do you find most informative?

InE9-36B.

Arbuckle's Anti-Aging, Inc. Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin Operating Expenses: Wages Rent Utilities Insurance Net income $250,000 50,000 200,000 $4,750 .2,050 1,000 2,400 10,200 $189,800 Beginning of the Year End of the Year Account Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable Utilities payable $15,000 5,000 100 4,000 375 $18,000 30,000 1,000 8,500 400 85