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

The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31 are presented below.

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