Selected information from Juno Ltd.'s statement of financial position and income statement is found in E13-5.
In addition to the information contained in these statements, note the following:
1. Prepaid expenses and accrued liabilities relate to operating expenses.
2. Accounts payable relate to purchases of merchandise.
3. Operating expenses included depreciation expense of $11,000 and a loss of $5,000 on the disposal of equipment.
In E13_5

Additional information:
The bank loan was issued to finance the purchase of equipment.
Operating expenses included depreciation expense of $11,000 and a loss of $5,000 on the disposal of equipment.
Instructions
Prepare the operating activities section of the statement of cash flows, using the direct method?

JUNO LTD. Statement of Financial Position (partial) December 31 2015 2014 Current assets Accounts receivable Merchandise inventory Prepaid expenses $7,000 5,900 3,000 $12,000 4,500 2,500 Current liabilities Accounts payable Income tax payable Accrued liabilities Bank loan payable- current portion 3,750 1,200 2,500 5,000 2,500 800 1,500 10,000 JUNO LTD. Income Statement Year Ended December 31, 2015 Net sales Cost of goods sold Gross proft Operating expenses Profit from operations Interest expense Profit before income tax Income tax expense Profit $190,000 114,000 76,000 50,000 26,000 1,200 24,800 3,800 21,000