Swifty Corporation had the following 2020 income statement. Revenues $97,000 Expenses 66,000 $31,000 In 2020, Swifty had the following activity in selected accounts. Accounts Receivable 1/1/20 19,000 Revenues 97,000 12/31/20 22,100 Write-offs 900 Collections 93,000 Allowance for Doubtful Accounts Write-offs 900 1/1/20 1,200 Bad debt expense 1,900 12/31/20 2,200
(a) Prepare Swifty’s cash flows from operating activities section of the statement of cash flows using the direct method.
(b) Prepare Tamarisk’s cash flows from operating activities section of the statement of cash flows using the indirect method.