Refer to the information in PB12-2.

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

Data from PB12-2:

Transcribed Image Text:

Selected Balance Sheet Accounts Income Statement Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries and Wages Expense Rent Expense Ending Beginning Balances $78,000 Balances 36,000 $ 430 1,800 $ 490 Inventory Accounts Receivable Accounts Payable Salaries and Wages Payable Utilities Payable Prepaid Rent Prepaid Insurance 16,000 1,500 10,000 1,200 1,300 2,500 450 250 Insurance Expense Interest Expense 1,300 1,200 1,000 100 80 100 Utilities Expense 70 90 $10,000 Net Income