M12-16 (Algo) Computing Cash Flows from Operating Activities (Direct Method) [LO 12-6] The two independent cases are listed below: Case A Case B Year 2 Year 1 Year 2 Year 1 Sales Revenue $ 11,700 $ 9,700 $ 24,500 $ 18,700 Cost of Goods Sold 6,350 5,850 13,400 11,350 Gross Profit 5,350 3,850 11,100 7,350 Depreciation Expense 1,070 1,070 1,570 1,570 Salaries and Wages Expense 2,850 2,070 5,700 5,070 Net Income $ 1,430 $ 710 $ 3,830 $ 710 Accounts Receivable $ 335 $ 435 $ 785 $ 635 Inventory 785 535 8

required: Compute the net cash flow from operating activities section of the Year 2 statement of cash flows using the direct method. (Amounts o be deducted should be indicated with a minus sign.)