M12-13 Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The two independent cases are listed below: Sales Revenue Cost of Goods Sold Gross Profit Depreciation Expense Salaries and Wages Expense Net Income Accounts Receivable Inventory Accounts Payable Salaries and Wages Payable Case A Year 2 Year 1 $11,400 $9,400 6,200 5,700 5,200 3,700 1,040 1,040 2,700 2,040 620 420 520 740 1,400 1,240 Case B Year 2 Year 1 $23,000 $18,400 12,800 11,200 10, 2007, 200 1,540 1,540 5,400 5,040 3,260 770 620 770 820 220 60 00 OO Compute the net cash flow from operating activities section of the Year 2 statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.) Case A Case B Cash Collected from Customers Cash Payments to Suppliers Cash Payments for Salaries and Wages Net Cash Provided by Operating Activities $ 0 $ 0