PA12-5 (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. meyured: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method: (Amounts to be deducted should be indicated with a minus sign.) Required: Prepare the cash flows from operating activities section of the statement of cash flows using the direct method. (Amounts to be deducted should be indicated with a minus sign.)