Refer to the information for Piura Merchandising Corporation given below
Information for Piura Merchandising Corporation
The income statement for Piura Merchandising Corporation is as follows:

Required:
Prepare a schedule of operating cash flows using the direct method.

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Piura Merchandising Corporation Income Statement At December 31, 2011 Sales Less: Cost of goods sold Beginning inventory Purchases Ending inventory 1,500,000 $ 400,000 800,000 (1,000,000] Less: Depreciation expense Less: Amortization of patent Less: Wages expense Less: Insurance expense Income before taxes Less: Income taxes (all current (100,000] 20,000] 80,000j 40 $ 260,000] 104 156,000 Net income