eBook Question Content Area (Appendix 11A) Determining Net Cash Flow from Operating ActivitiesDirect Method Presented below are selected balance sheet information and the income statement for Burch Company. Selected Balance Sheet Information Jan. 1 Dec. 31 Cash $7,200 $17,500 Accounts receivable 8,000 10,500 Inventory 21,700 21,000 Accounts payable 10,000 16,500 Income taxes payable 2,500 1,500 Burch Company Income Statement For the year ended December 31 Sales $250,000 Cost of goods sold (1