QUESTION 11 Given the following information, prepare the operating activities section of the statement of cash flows using the (a) direct method Sales Cost of goods sold Gross profit Depreciation expense Wages expense Operating expenses Interest expense Income tax expense Net income Increase in accounts receivable Decrease in inventory Decrease in prepaid expenses Decrease in accounts payable Increase in interest payable 2,000 $500,000 300,000 200,000 20,000 50.000 30,000 10,000 27,000 $ 63,000 $15,000 20,000 5,000 8,000

Given the following information, prepare the operating activities section of the statement of cash fiows using the (a) direct method