A comparative balance sheet and income statement is shown for Cruz, Incorporated.

Use the above balance sheet and income statement to prepare the operating activities section by direct method. Assume all the sales were made on credit basis.

\begin{tabular}{|l|l|} \hline Cash flows from operating activities & \\ \hline Receipts from sales to customers & \\ \hline Payments for inventory & \\ \hline Payments for other expenses & \\ \hline Payments for taxes & \\ \hline & \\ \hline & $ \\ \hline \end{tabular}