Part B - Direct Method Presented below is the latest income statement of Mandolin Ltd.: Sales Cost of goods sold Gross profit Operating expenses Income before income taxes Income taxes Net income $570,000 337,500 $232,500 127,500 105,000 42,000 $63,000 In addition, the following information related to net changes in working capital is available: Debit Credit Cash $18,000 Accounts receivable (net) 12,000 Inventories $29,100 Salaries payable (operating expenses) 9,000 Accounts payable 13,500 Income tax payable 4,500 Mandolin Ltd. also reports that depreciation expense for the year was $ 20,550 and that the deferred tax liability account increased $ 3,900. Instructions Prepare a schedule calculating the net cash flow from operating activities that would be shown on a statement of cash flows using the direct method.