The income statement and selected balance sheet information for Direct Products Company for the year ended December 31, 2017 are as follows:

Required:

Prepare the cash flows from operating activities section of the 2017 statement of cash flows using the indirect method.

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Income Statement Selected Balance Sheet Accounts Sales Revenue Expenses: Cost of Goods Sold Depreciation Expense Salaries Expense Rent Expense Insurance Expense Interest Expense Utilities Expense Net Income 2017 $48,600 2016 Accounts Receivable Merchandise Inventory Accounts Payable Prepaid Rent Prepaid Insurance Salaries Payable Utilities Payable $560 990 440 $580 770 460 21,000 2,000 9,000 25 25 4,500 1,900 28 70 15 100 20 1,800 1,400 $ 7,000 20