(Appendix 11A) Preparing Net Cash Flows from Operating ActivitiesDirect Method The income statement for Granville Manufacturing Company is presented below. Granville Manufacturing Company Income Statement For the year ended December 31 Sales $4,199,830 Cost of goods sold (2,787,210) Gross margin $1,412,620 Operating expenses: Salaries expense $(831,800) Depreciation expense (246,100) Administrative expense (131,000) Bad debt expense (51,700) Other expenses (43,900) Net income $ 108,120 The following bal