$($Appendix $11$A$)$ Preparing Net Cash Flows from Operating Activities$-$Direct Method

The income statement for Granville Manufacturing Company is presented below.

Granville Manufacturing Company

Income Statement

For the year ended December $31$

$\backslash$table$[[$Sales$,$$$4,199,830$

$\backslash$table$[[$Gross margin,$$1,412,620$