PA12-5 (Algo) 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. Income Statement Sales Revenue $ 45,600 Expenses: Cost of Goods Sold 19,500 Depreciation Expense 1,700 Salaries and Wages Expense 8,700 Rent Expense 4,200 Insurance Expense 1,750 Interest Expense 1,650 Utilities Expense 1,250 Net Income $ 6,850 Selected Balance Sheet Accounts Selected Balance Sheet Accounts Ending Balances Beginning Balances Accounts Receivable $ 575 $ 610 Inventory 860 705 Accounts Payable 435 490 Prepaid Rent 31 23 Prepaid Insurance 28 34 Salaries and Wages Payable 74 47 Utilities Payable