Determining Operating Cash Flows-Direct Method Sterling Corporation's recent comparative balance sheet and income statement follow. Balance Sheets, December 31 Assets Cash and cash equivalents 2019 2020 Difference $47,600 $46,900 $(700) Accounts receivable (net) 16,800 23.800 7,000 Inventory 22,400 19,600 (2.800) Investment, long-term 8,400 (8,400) Rxed assets 112,000 137,200 25,200 Accumulated depreciation (67,200) (54,600) 12,600 Total assets $140,000 $172,900 $32.900 Liabilities and Stockholders' Equity Accounts payable 26,600 16,800 (9,800) Bonds payable 14,000 42,000 28,000 Common stock, no-par 70,000 91,000 21,000 Retained earnings 29,400 39,200 9,800 Treasury stock (16,100) (16,100) Total liabilities and stockholders' equity $140,000 $172,900 $32,900 Income Statement, For Year Ended December 31 2020 Sales revenue $98,000 Cost of goods sold (58,800) Gross margin 39,200 Depreciation expense (7,000) Other operating expenses (25,200) Gain on sale of investments 4,200 Loss on sale of fixed assets (1,400) Net income $9,800 Analysis of selected accounts and transactions 1. Sold fixed assets for cash; cost, $29,400, and two-thirds depreciated. 2. Purchased fixed assets for cash, $12,600. 3. Purchased fixed assets; exchanged unissued bonds of $42,000 (face value and fair value) in payment. 4. Sold the long-term investments for $9,000 cash. Assume carrying value of the investment is equal to its original purchase price. 5. Purchased treasury stock for cash, $16,100. 6. Retired bonds payable at maturity date by issuing common stock, $14,000. 7. Sold unissued common stock for cash, $7,000. Required Prepare the operating activities section of the statement of cash flows, using the direct method. Assume there is no bad debt expense. Note: Use negative signs with amounts for cash outflows. Cash Flows from Operating Activities Collections from customers Payments to suppliers Other operating expenses Net cash provided (used) by operating activities