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In: AccountingThe following accounts and corresponding balances were drawnfrom Thornton Company’s Year 2 and Year 1...The following accounts and corresponding balances were drawnfrom Thornton Company’s Year 2 and Year 1 year-end balancesheets.Account TitleYear 2Year 1Accounts receivable$73,700$80,300Prepaid rent520930Utilities payable1,7901,020Other operating expenses payable31,40034,400The Year 2 income statement is shown as follows.Income StatementSales$297,000Rent expense(23,000)Utilities expense(35,800)Other operating expenses(166,400)Net Income$71,800RequiredPrepare 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.