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Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2013

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Portions of the financial statements for Hawkeye Company are provided below.
HAWKEYE COMPANY
Income Statement
For the Year Ended December 31, 2013
  Sales     $ 820  
  Cost of goods sold       (310 )
     
     Gross margin       510  
  Salaries expense $ 224        
  Depreciation expense  182        
  Interest expense  32        
  Gain on sale of cash equivalents    (4 )   (434 )
 
  Income before taxes and extraordinary loss       76  
     Income tax expense       (38 )
     
  Income before extraordinary loss       38  
     Extraordinary loss (flood damage to inventory)  12        
     Less: Tax savings  (6 )   (6 )
 
  Net Income     $ 32  
     
HAWKEYE COMPANY
Selected Accounts from Comparative Balance Sheets
December 31, 2013 and 2012
  Year    
     
     2013    2012   Change  
  Cash $248    $218    $30      
  Accounts receivable 387    405    (18)     
  Inventory 896    868    28      
  Accounts payable 228    270    (42)     
  Salaries payable 188    204    (16)     
  Interest payable 71    58    13      
  Income taxes payable 98    120    (22)     
Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Amounts to be deducted should be indicated with a minus sign.)
Direct Method
  Cash Flows from Operating Activities:  
   (Click to select) Gain on sale of cash equivalents Cash paid for interest Cash paid to suppliers Cash paid to employees Interest expense Cost of goods sold Cash received from customers Cash paid for income taxes $  
   (Click to select) Cost of goods sold Interest expense Cash paid to employees Cash received from customers Cash paid to suppliers Cash paid for income taxes Gain on sale of cash equivalents Cash paid for interest  
   (Click to select) Cash paid to suppliers Cash paid for interest Gain on sale of cash equivalents Cost of goods sold Cash paid for income taxes Cash received from customers Cash paid to employees Interest expense  
   (Click to select) Cash received from customers Cash paid to employees Cost of goods sold Gain on sale of cash equivalents Interest expense Cash paid for interest Cash paid for income taxes Cash paid to suppliers  
   (Click to select) Interest expense Cost of goods sold Gain on sale of cash equivalents Cash paid to employees Cash received from customers Cash paid for interest Cash paid for income taxes Cash paid to suppliers  
   (Click to select) Interest expense Gain on sale of cash equivalents Cash received from customers Cost of goods sold Cash paid for interest Cash paid for income taxes Cash paid to suppliers Cash paid to employees  
 
  Net cash flows from operating activities $  
 
2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
Indirect Method
  Cash Flows from Operating Activities:  
  Net income $  
  Adjustments for noncash effects:  
   (Click to select) Salaries expense Sales Depreciation expense Extraordinary loss Interest expense Extraordinary gain Cost of goods sold Bad debt expense  
   (Click to select) Extraordinary gain Depreciation expense Sales Extraordinary loss Salaries expense Cost of goods sold Interest expense Bad debt expense  
     Changes in operating assets and liabilities:  
   (Click to select) Increase in inventory Decrease in accounts payable Decrease in salaries payable Increase in interest payable Decrease in income taxes payable Decrease in accounts receivable  
   (Click to select) Decrease in income taxes payable Increase in interest payable Decrease in accounts payable Increase in inventory Decrease in accounts receivable Decrease in salaries payable  
      (Click to select) Increase in accounts payable Decrease in income taxes payable Decrease in inventory Decrease in accounts payable Decrease in salaries payable Increase in interest payable  
      (Click to select) Decrease in inventory Decrease in income taxes payable Increase in accounts payable Decrease in accounts payable Decrease in salaries payable Increase in interest payable  
      (Click to select) Decrease in inventory Decrease in salaries payable Increase in interest payable Increase in accounts payable Decrease in accounts payable Decrease in income taxes payable  
      (Click to select) Decrease in income taxes payable Increase in interest payable Decrease in accounts payable Decrease in salaries payable Increase in accounts payable Decrease in inventory  
 
     Net cash flows from operating activities $  
 

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