Data for Guesser Company are presented in E23-3B.
In E23-3B, the income statement of Guesser Company is shown below.

Additional information:
1. Accounts receivable decreased $63,000 during the year.
2. Inventory increased $38,000 during the year.
3. Prepaid expenses increased $12,000 during the year.
4. Accounts payable to increased $25,000 during the year.
5. Accrued expenses payable increased $6,000 during the year.
6. Administrative expenses include depreciation expense of $20,000.

Instructions
Prepare the operating activities section of the statement of cash flows using the directmethod.

GUESSER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2014 Sales Cost of goods sold Gross proft $755,000 543,000 212,000 Operating expenses Selling expenses Administrative expenses $52,000 89,000 141,000 S 71,000 Net income