Lake Company's 2016 income statement and selected balance sheet data (for current assets and current liabilities) at December 31, 2015 and 2016, follow.

LAKE COMPANY

Income Statement

For Year Ended December 31, 2016

Sales revenue . . . . . . . . . . . . . . . . . . $156,000

Expenses.............................................

Cost of goods sold . . . . . . . . . . . . . . . 72,000

Depreciation expense . . . . . . . . . . . . . 32,000

Salaries expense . . . . . . . . . . . . . . . . . 20,000

Rent expense . . . . . . . . . . . . . . . . . . . . 5,000

Insurance expense . . . . . . . . . . . . . . . . 2,600

Interest expense . . . . . . . . . . . . . . . . . 2,400

Utilities expense . . . . . . . . . . . . . . . . . 2,000

Net income . . . . . . . . . . . . . . . . . . . $ 20,000

LAKE COMPANY

Selected Balance Sheet Accounts

At December 31 ____________2016 _______________2015

Accounts receivable . . . . . . . . . $3,600 ................... $3,000

Inventory . . . . . . . . . . . . . . . . . . 860 ......................... 980

Accounts payable . . . . . . . . . . . 2,400 ...................... 2,600

Salaries payable . . . . . . . . . . . . . 900 ........................ 600

Utilities payable . . . . . . . . . . . . . 200 ........................... 0

Prepaid insurance . . . . . . . . . . . 140 .......................... 180

Prepaid rent . . . . . . . . . . . . . . . 100 .......................... 200

Required

Prepare the cash flows from operating activities section only of the company's 2016 statement of cash flows using the direct method.