Portions of the financial statements for Clear Transmissions Company are provided on the next page.

Required:Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method.

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CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) $1,320 Sales Cost of goods sold 500 Gross margin Salaries expense Depreci Amortization expense 820 $220 10 Interest expense Loss on sale of cash equivalents 40 456 Income before taxes 364 Income tax expense 182 $ 182 Net Income CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year Change 2021 2020 $ 2 (12) $102 $100 232 Cash Accounts receivable 220 Inventory Accounts payable Salaries payable Interest payable Income tax payable 440 450 (10) 140 80 25 134 86 (6) 20 15 10