E12-21 (Algo) (Supplement A) Reporting Cash Flows from Operating Activities from an Analyst's Perspective (Direct Method)

The following information pertains to Peak Heights Company:

Required:

Present the operating activities section of the statement of cash flows for Peak Heights Company using the direct method.

Note: List cash outflows as negative amounts.

These are the options for the table in each row

\begin{tabular}{|lrr} \hline Income Statement for Current Year & & \\ Sales & & $85,800 \\ Expenses & $51,775 & \\ Cost of goods sold & 7,900 & \\ Depreciation expense & 11,100 & 70,775 \\ Salaries expense & & $15,025 \\ \cline { 2 - 3 } Net income & & \end{tabular} PartialBalanceSheetAccountsreceivableInventorySalariespayableCurrentyear$11,20013,3001,620Prioryear$14,2008,100980 Cash payments to suppliers of inventory