Refer to the information in PB12-2.
Income Statement
Sales Revenue ........ $78,000
Expenses:
Cost of Goods Sold ....... 36,000
Depreciation Expense ..... 16,000
Salaries Expense ....... 10,000
Rent Expense ........ 2,500
Insurance Expense ....... 1,300
Interest Expense ....... 1,200
Utilities Expense....... 1,000
Net Income ........ $10,000

Required:
Prepare the cash flows from operating activities section of the 2013 statement of cash flows using the directmethod.

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Selected Balance Sheet Accounts 2013 2012 Merchandise Inventory Accounts Receivable Accounts Payable Salaries Payable Utilities Payable Prepaid Rent Prepaid Insurance 1,800 1,200 450 100 80 70 430 490 1,500 1,300 250 100 90