Use the income statement for Arbuckles Anti-Aging, Inc., for the year ended December 31, 2011, and the

Use the income statement for Arbuckle’s Anti-Aging, Inc., for the year ended December 31, 2011, and the information from the comparative balance sheets shown for the beginning and the end of the year to prepare the operating section of the statement of cash flows using the directmethod.

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Arbuckle's Anti-Aging, Inc. Income Statement For the Year Ended December 31, 2011 Sales Cost of goods sold Gross margin Operating Expenses: Wages Rent Utilities Insurance Net income $250,000 50,000 200,000 $4,750 .2,050 1,000 2,400 10,200 $189,800 Beginning of the Year End of the Year Account Accounts receivable Inventory Prepaid insurance Accounts payable Wages payable Utilities payable $15,000 5,000 100 4,000 375 $18,000 30,000 1,000 8,500 400 85