Azure Corporation had the following 2011 income statement data:

The following accounts increased during 2011 by the amounts shown: Accounts Receivable, $17,000; Inventory, $11,000; Accounts Payable, $13,000; Mortgage Payable, $40,000. Prepare the cash flows from operating activities section of Azure€™s 2011 statement of cash flows using the direct method.

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Sales Cost of goods sold Gross profit Operating expenses (includes depreciation of $21,000) Net income $205,000 120,000 85,000 50,000 35,000