The following accounts and corresponding balances were drawnfrom Rooney Company’s Year 2 and Year...

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Accounting

The following accounts and corresponding balances were drawnfrom Rooney Company’s Year 2 and Year 1 year-end balancesheets.
Account Title Year 2 Year 1
Accounts receivable $ 74,300 $ 79,700
Prepaid rent 630 1,020
Utilities payable 1,640 850
Other operating expenses payable 32,100 35,600
The Year 2 income statement is shown as follows.
Income Statement
Sales $ 292,000
Rent expense (22,900 )
Utilities expense (34,700 )
Other operating expenses (167,400 )
Net Income $ 67,000
Required
Prepare the operating activities section of the statement ofcash flows using the direct method.
Prepare the operating activities section of the statement ofcash flows using the indirect method.
Prepare the operating activities section of the statement ofcash flows using the direct method. (Cash outflows should beindicated with minus sign.)
Cash Flows from OperatingActivities—Direct Method
Cash flows from operatingactivities:
Net cash flow fromoperating activities $0
Prepare the operating activities section of the statement ofcash flows using the indirect method. (Amounts to be deductedshould be indicated with a minus sign.)
Cash Flows from OperatingActivities—Indirect Method
Cash flow from operatingactivities:
Plus:
Less:
Net cash flow fromoperating activities $0

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In: AccountingThe following accounts and corresponding balances were drawnfrom Rooney Company’s Year 2 and Year 1...The following accounts and corresponding balances were drawnfrom Rooney Company’s Year 2 and Year 1 year-end balancesheets.Account TitleYear 2Year 1Accounts receivable$74,300$79,700Prepaid rent6301,020Utilities payable1,640850Other operating expenses payable32,10035,600The Year 2 income statement is shown as follows.Income StatementSales$292,000Rent expense(22,900)Utilities expense(34,700)Other operating expenses(167,400)Net Income$67,000RequiredPrepare the operating activities section of the statement ofcash flows using the direct method.Prepare the operating activities section of the statement ofcash flows using the indirect method.Prepare the operating activities section of the statement ofcash flows using the direct method. (Cash outflows should beindicated with minus sign.)Cash Flows from OperatingActivities—Direct MethodCash flows from operatingactivities:Net cash flow fromoperating activities$0Prepare the operating activities section of the statement ofcash flows using the indirect method. (Amounts to be deductedshould be indicated with a minus sign.)Cash Flows from OperatingActivities—Indirect MethodCash flow from operatingactivities:Plus:Less:Net cash flow fromoperating activities$0

Account Title	Year 2		Year 1
Accounts receivable	$	74,300	$	79,700
Prepaid rent		630		1,020
Utilities payable		1,640		850
Other operating expenses payable		32,100		35,600

Income Statement
Sales	$	292,000
Rent expense		(22,900	)
Utilities expense		(34,700	)
Other operating expenses		(167,400	)
Net Income	$	67,000