PA$12-5($Static$)$ Computing Cash Flows from Operating Activities $($Direct Method$)[$LO $12-6]$

The income statement and selected balance sheet information for Direct Products Company for the year ended December $31$ are presented below.

Required:

Prepare the cash flows from operating activities section of the statement of cash flows using the direct method.

Note: Amounts to be deducted should be indicated with a minus sign.