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

Problem 17-2A (b) (direct method) Blossom Led. reported the following for the fiscal year 2017: BLOSSOM LTD. Income Statement Year Ended September 30, 2017 Sale $571,000 Cost of goods sold 326,000 Gross profit 245,000 Operating expenses $ 97,000 Depreciation expense 22,000 Gain on sale of land (32,000) 87,000 Profit before income tax 158,000 Income tax expense 39,500 Profit $118,500 Additional information: 1. Accounts receivable decreased by $15,100 during the year. 2. Inventory increased by $6,600 during the year, 3. Prepaid expenses decreased by $4,600 during the year, 4. Accounts payable to suppliers increased by $10,100 during the year. 5. Accrued expenses payable increased by $4,100 during the year. 6. Income tax payable decreased by $5,900 during the year, Prepare the operating activities section of the cash flow statement using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) BLOSSOM LTD. Cash Flow Statement (Partial)-Direct Method