Operating Cash Flows (Direct Method) Howell Company's current-year income statement reports the following. Sales. ...... ...... $785,000 Cost of goods sold.............. 450,000 Gross profit. ................... $335,000 Howell's comparative balance sheets show the following (accounts payable relate to merchandise purchases). End of Year Accounts receivable. ....... $ 68,000 Inventory........... 109,000 Prepaid expenses... 2,000 Accounts payable... 31,000 Beginning of Year $60,000 99,000 8,000 36,000 Compute Howell's current-year cash received from customers and cash paid for merchandise purchased