Please explain all concepts and show math.

Operating Cash Flows (Direct Method) The Howell Company's current year income statement contains the following data: Sales revenue $775,000 Cost of goods sold 550,000 Gross profit $225,000 Howell's comparative balance sheets show the following data (accounts payable relate to merchandise purchases): End of Year Beginning of Year Accounts receivable $71,000 Inventory Prepaid expenses $60,000 96,000 8,000 35,000 3,000 Cash received from customers Cash paid for merchandise purchased