The following accounts and corresponding balances were drawn from Rooney Companys Year 2 and Year 1 year-end balance sheets.

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

1. Prepare the operating activities section of the statement of cash flows using the direct method.

2. Prepare the operating activities section of the statement of cash flows using the indirect method.

Prepare the operating activities section of the statement of cash flows using the direct method. (Cash outflows should be indicated with minus sign.)

	Cash Flows from Operating ActivitiesDirect Method Cash flows from operating activities: Net cash flow from operating activities $0

Prepare the operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)

	Cash Flows from Operating ActivitiesIndirect Method Cash flow from operating activities: Plus: Less: Net cash flow from operating activities $0