eBOR Problem 11-58A (Algorithmic) (Appendix 11A) Preparing Net Cash Flows from Operating Activities-- Direct Method The income statement for Granville Manufacturing Company is presented below. Granville Manufacturing Company Income Statement For the year ended December 31, 2019 Sales Cost of goods sold $4,199,830 2,787,210 $1,412,620 $831,800 246,100 Gross margin Operating expenses: Salaries expense Depreciation expense Administrative expense Bad debt expense Other expenses Net income 131,000 51,700 43,900 1,304,500 $ 108,120 The following balance sheet changes occurred during the year: Accounts receivable increased by $940,500. SBOOK Net income $ 100, 120 The following balance sheet changes occurred during the year: Accounts receivable increased by $940,500 Inventory increased by $100,325 Prepaid expenses decreased by $64,100. Accounts payable increased by $43,850. Salaries payable increased by $54,900 Required: Prepare the cash flows from operating activities section of the statement of cash flows, using the direct method. Use a minus sign to indicate any decreases in cash or cash outflows. Granville Manufacturing Company Statement of Cash Flows (Partial) Using Direct Method Cash flows from operating activities: Cash collected from customers 0,500 x Cash paid to suppliers 144,175 X Cash paid for operating expenses -N7,700 196,975 X Net cash provided by operating activities