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$($Appendix $11$A$)$ 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 $$6,900$ $$17,500$

Accounts receivable $8,00010,500$

Inventory $22,10021,000$

Accounts payable $10,00021,700$

Income taxes payable $2,5001,700$

Burch Company

Income Statement

For the year ended December $31$

Sales $$250,000$

Cost of goods sold $(160,000)$

Depreciation expense $(30,000)$

Other expenses $(35,000)$

Income tax expense $(12,000)$

Net income $$13,000$

Required:

Compute the net cash flows from operating activities using the direct method.

$fill in the blank $1$