Presented Below Is the Latest Income Statement of Minx Ltd

Presented below is the latest income statement of Minx Ltd.: $\begin{array}{lrr} \text{ Sales } ............................................ & \$ 1,900,000 \\\text{ Cost of goods sold } ......................& 1,125,000 \\\text{ Gross profit } .................................& \$ 775,000 \\\text{ Operating expenses }...................... & 425,000 \\\text{ Income before income taxes } ........... & 350,000 \\\text{ Incometaxes }.................................& 140,000 \\\text{ Net income} .................................& \$ 210,000 \\ \end{array}$ In addition, the following information related to net changes in working capital is available: $\begin{array}{lrr} & \text{ \underline{ Debit } } & \text{ \underline{ Credit } } \\\text{ Cash }.......................................................... & \$ 60,000 & \\\text{ Accounts receivable (net) }........................... & 40,000 & \\\text{ Inventories } ................................................. & & \$ 77,000 \\\text{ Prepaid expenses } .......................................... & & 20,000 \\\text{ Salar ies payable (operating expenses) .......... } & 30,000 & \\\text{Accounts payable }.......................................... & & 45,000 \\\text{ Income tax payable } ....................................... & 15,000 & \\ \end{array}$ Minx Ltd. also reports that depreciation expense for the year was $ 68,500 and that the deferred tax liability account increased $ 13,000.
Instructions
Prepare a schedule calculating the net cash flow from operating activities that would be shown on a statement of cash flows:
a) using the indirect method.
b) using the direct method.