es [The following information applies to the questions displayed below.] Green Brands, Incorporated (GBI) presents its statement of cash flows using the indirect method. The following accounts and corresponding balances were drawn from GBI's Year 2 and Year 1 year-end balance sheets: Account Title Accounts receivable Merchandise inventory Prepaid insurance Accounts payable Salaries payable Unearned service revenue The Year 2 income statement is shown next: Sales Cost of goods sold Gross margin Service revenue Insurance expense Salaries expense Income Statement Depreciation expense Operating income Gain on sale of equipment Net income Year 2 $ 21,500 56,700 15,000 26,300 4,950 850 GREEN BRANDS, INCORPORATED Statement of Cash Flows (Operating Activities) For the Year Ended December 31, Year 2 Cash flows from operating activities: Cash collections from customers for sales Cash collections from customers for services Cash payments for: Net cash flow from operating activities Year 1 $ 26,300 49,900 26,400 18,900 $ 607,000 Required a. Prepare the operating activities section of the statement of cash flows using the direct method for Year 2. Note: Amounts to be deducted should be indicated with a minus sign. 3,850 2,850 (375,000) 232,000 4,300 (39,000 (149,000) (5,300) 43,000 4,900 $ 47,900

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