(APPENDIX 11A) PREPARING NET CASH FLOWS FROM OPERATING ACTIVITIES—DIRECT METHOD Colassard Industries has the following data available for preparation of its statement of cash flows:

Sales revenue $345,000 Inventory, increase $ 9,700 Cost of goods sold 182,500 Prepaid insurance, increase 6,100 Wages expense 34,400 Accounts payable, increase 11,600 Insurance expense 12,000 Notes payable, increase 32,000 Interest expense 20,800 Interest payable, increase 5,000 Income taxes expense 16,200 Wages payable, decrease 5,400 Accounts receivable, decrease 14,300 Required:
Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method.
Exercise