(Appendix 11A) Determining Net Cash Flow from Operating Activities-Direct Method Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $7,500 $17,500 Accounts receivable. 8,000 10,500. Inventory 24,900 21,000 Accounts payable 10,000 24,800 Income taxes payable 2,500 2,200 Burch Company Income Statement For the year ended December 31 Sales Cost of goods sold Depreciation expense Other expenses Income tax expense $250,000 (160,000) (11,800) (35,000) (12,000) Check My Work 6 more Check My Work uses remaining COSIT 37,500 Accounts receivable 8,000 10,500 Inventory 24,900 21,000 Accounts payable 10,000 24,800 Income taxes payable 2,500 2,200 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (160,000) < Depreciation expense (11,800) Other expenses (35,000) Income tax expense (12,000) Net income $31,200 13 Required: Compute the net cash flows from operating activities using the direct method.