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 and Wages Expense.........10,000

Rent Expense............................2,500

Insurance Expense......................1,300

Interest Expense........................1,200

Utilities Expense........................1,000

Net Income...........................$10,000

Selected Balance Sheet Accounts

EndingBeginning

BalancesBalances

Inventory..........................$ 430........................$ 490

Accounts Receivable............1,800.......................1,500

Accounts Payable................1,200.......................1,300

Salaries and Wages Payable......450.........................250

Utilities Payable....................100............................0

Prepaid Rent.........................80.........................100

Prepaid Insurance...................70...........................90

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.