Question 2 Partially correct Mark 2.00 out of4.00 ? Flag question {0 Edit question (Appendix 3A) Converting Indirect Method Cash Flows to Direct Method Cash Flows The Burnet Corporation disclosed the following statement of earnings in its current annual report (amounts in thousands}: Earnings Statement Current Year Revenues $2,430 Cost of goods sold (1200) Gross margin 1,230 Depreciation and amortization expense (260) SellingI general and administrative expenses (240) Operating income 1'30 Unusualgain on sale of land i'0 Net income $800 In addition. the company reported the following data regarding its operating cash flow in its yearend statement of cash flow {amounts in tl Statement of Cash Flow (Indirect Method] Current Year Operating activities Net income $800 Depreciation and amortization expense 260 Accounts receivable (250) Inventory (5) Accounts payable 50 Gain on sale of land (in) Cash flow from operating activities $?85 Using the above information for the current year. construct the Burnet Corporation's cash ow from operating activities on a direct methoc [in thousands} Current Year Operating activities Cash from sales Ii 1.110 a Cash for cost of goods sold 85 8 Cash for selling, general and administrative expenses (240) v Cash flow from operations 1i T85 v