The income statement for M2 Pizza Pie Company for the current year ended June 30 and balances of selected accounts at the beginning and the end of the year are as follows:

Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the directmethod.

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Sales.. $202,400 70,000 Cost of merchandise sold Gross profit Operating expenses: Depreciation expense. Other operating expenses $132,400 $17,500 52,400 Total operating expenses 69,900 $ 62,500 18,000 $ 44,500 Income before income tax Income tax expense Net income Beginning of Year End of Year $14, 190 36,410 7,260 28,490 9,460 1,650 Accounts receivable (net) . Inventories..... $16,300 41,900 6,600 30,690 8,690 1,650 Prepaid expenses. Accounts payable (merchandise creditors) Accrued expenses payable (operating expenses) Income tax payable