Reference no: EM132523472

Brice Corporation reported the following information:

2014 Income Statement

Sales Revenue $8,200,000

Cost of goods Sold 6,400,000

Gross Profit 1,800,000

Operating expenses (includes $200,000 depreciation expense) 1,250,000

Pretax Income 550,000

Income tax expense (30% rate) 165,000

Net Income $385,000

Balance Sheet

                                                     2014                                     2013

Accounts Receivable                $800,000                      $600,000

Inventory                                  520,000                     480,000

Prepaid Expenses                          110,000                      120,000

Accounts Payable                           340,000                    310,000

Accrued Liabilities                            80,000                    90,000

Income taxes payable                       25,000                     40,000

Unearned Revenue                                100,000              200,000

REQUIRED:

Question a. Prepare the operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the indirect method.

Question b. Prepare the operating activities section of a cash flow statement, in good form, for Brice Company for the year ended December 31, 2014. Use the direct method