(Appendix 11A) Preparing Net Cash Flows from Operating ActivitiesDirect Method}

Colassard Industries has the following data available for preparation of its statement of cash flows:

\section*{Required:}
Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method.
Exercise

Sales revenue Cost of goods sold Wages expense Insurance expense $356,200 Inventory, increase $ 5,710 182,500 Prepaid insurance, increase 2,100 58,400 Accounts payable, increase 5,680 8,300 Notes payable, increase 32,000 Interest expense 20,800 Interest payable, increase 3,125 Income tax expense 16,200 Wages payable, decrease 5,400 Accounts receivable, decrease 14,300