Requirement Compute net cash flow from operating activities under the direct reporting format. (Use a minus sign or parentheses for any cash outflows and/or net cash used by operating activities. If a box is not used in the statement, leave the box empty; do not select a label or enter a zero.) i Statement of Net Income Rugby Apparel Providers, Inc. Partial Statement of Cash Flows (Direct Method) For the Current Year Ended Operating Activities: Rugby Apparel Providers, Inc. Statement of Net Income For the Current Year Ended Sales Cost of Goods Sold $ 1,900,000 (1,050,000) (125,000) (520,000) Depreciation Expense Net Cash Provided (Used) by Operating Activities Selling, General, and Administrative Expenses Operating Income 205,000 (159,000) Tax Expense $ 46,000 Net Income x i Changes in balance sheet accounts Changes in Balance Sheet Accounts Amount $ 31,000 42,000 Decrease in Accounts Receivable Decrease in Inventory Increase in Prepaid Expenses Decrease in Accounts Payable 7,000 36,000 Increase in Income Taxes Payable 35,000