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Exercise 12-6A (Algo) Direct versus indirect method of determining cash flows from operating activities LO...

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Exercise 12-6A (Algo) Direct versus indirect method of determining cash flows from operating activities LO 12-1, 12-2 Expert Electronics, Inc. (EEI) recognized $4,700 of sales revenue on account and collected $2,700 of cash from accounts receivable. Further, EEl recognized $1,500 of operating expenses on account and paid $1,000 cash as partial settlement of accounts payable. Required Based on this information alone: a. Prepare the operating activities section of the statement of cash flows under the direct method. (Amounts to be deducted should be indicated with a minus sign.) Operating Activities - Direct Method Cash flows from operating activities Net cash flow from operating activities b. Prepare the operating activities section of the statement of cash flows under the Indirect method. (Amounts to be deducted should be indicated with a minus sign.) Operating Activities - Indirect Method Cash flows from operating activities: Net cash flow from operating activities

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