Using the data from Concept Check 2 plus the additional information in Figure 21.11 , compute net cash flows from operating activities using the direct method.

Income Statement

$8400 00 229000 $6110 00 Sales Cost of Goods Sold Gross Profit Expenses: $ 63000 225000 50000 Depreciation Expense Salaries Expense Insurance Expense Miscellaneous Expense 28000 366 0 00 $2 45000 Total Expenses Net Income