HOW DO I DO THE DIRECT METHOD?

HOW CAN I FIGURE OUT IF ITS DECREASE OR INCREASE?

At December $31$ Current Year Prior Year

Accounts Receiable $5,6005,800$

Inventory $1,9801,540$

Accounts Payable $4,4004,600$

Salaries Payable $880700$

Utilities Payable $220160$

Prepaid Insurance $260280$

Prepaid Rent $220180$

Income Statment

Sales Revenue $97,200$

Expenses

Costs of Goods Sold $42,000$

Depreciate Expense $12,000$

Salaries Expense $18,000$

Rent Expense $9,000$

Insurance Expense $3,800$

Interest Expense $3,600$

Utilities Expense $2,800$

Net Income $$6,000$