Exercise 21-25 (Static) Cash flows from operating activities (direct method)-includes sale of cash equivalent (LO21-3) Portions of the financial statements for Clear Transmissions Company are provided below. CLEAR TRANSMISSIONS COMPANY Income Statement For the Year Ended December 31, 2021 ($ in thousands) $1,320 Sales 500 Cost of goods sold 820 Gross margin $220 Salaries expense 180 Depreciation expense 10 Amortization expense 40 456 Interest expense 364 Loss on sale of cash equivalents_6 Income before taxes $ 182 Income tax expense Net Income 182 CLEAR TRANSMISSIONS COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2021 and 2020 ($ in thousands) Year 2021 2020 Change Cash $102 $100 $ 2 Accounts receivable 232 (12) Inventory 440 450 (10) Accounts payable 134 Salaries payable 80 Interest payable Income tax payable 10 220 140 86 Required: Prepare the cash flows from operating activities section of the statement of cash flows for Clear Transmissions Company using the direct method (Enter your answers in thousands (i.e., 5,000 should be entered as 5). Amounts to be deducted should be indicated with a minus sign.) Cash Flows from Operating Activities: 1 of 3 Next >