Roberts Company has provided the following partial comparative balance sheets and the income statement for 2012.

Required:
Compute operating cash flows using the direct method.

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Roberts Company Comparative Balanoe Sheets At December 31, 2011 and 2012 2011 2012 Current assets: Accounts receivable Inventories Current liablities: Accounts payable $350,000 $281,500 150,000 125,000 300,000 237,500 Roberts Company Income Statement For the Year Ended December 31, 2012 Gain on sale of equipmernt Less: Cost of goods sold Less: Depreciation expense Less: Interest expense $1,200,000 50,000 (650,000 (125,000] 25 Net income 450,000