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Figure 12.12

20) (Appendix) Operating Activities Section Using the Direct Method. The following income statement and current sections of the balance sheet are for Donzi Inc (this is the same infomation as the previous brief exercise) Donzi, Inc. Income Statement for the Year Ended December 31, 2012 Sales Cost of goods sold Gross margin Selling and administrative expenses Depreciation expense Operating income Gain on sale of equipment Income before taxes Income tax expense Net income 5650,000 410,000 240,000 89,000 21,000 130,000 1,600 46,600 December 31 2012 2011 Current assets 5 40,000 Cash Accounts receivable Merchandise inventory Prepaid expenses 10,000 12.500 4,000 5 32000 8000 16,000 2,700 Current liabilities Accounts payable Income tax payable 4,500 2.200 ,700 Reguired: Using the direct method, prepare the operating activities section of the statement of cash flows for Donzi, Inc, for theyar ended December 31, 2012. Use the fomat presented in Figure 12.12 the Inc