Tanucci Clothing Store's income statement follows. Tanucci Clothing Store Income Statement For the Year Ended June...

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Tanucci Clothing Store's income statement follows. Tanucci Clothing Store Income Statement For the Year Ended June 30, 2014 Net sales Cost of goods sold: Beginning inventory Net cost of purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Operating expenses: Sales and administrative salaries expense Other sales and administrative expenses Total operating expenses Income before income taxes Income taxes Net income $1,240,000 3,040,000 $4,280,000 1,400,000 $1,112,000 624,000 $4,900,000 2,880,000 $2,020,000 1,736,000 $ 284,000 78,000 $ 206,000 Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000, accounts payable increased by $228,000, and income taxes payable decreased by $14,400. REQUIRED Using the direct method, prepare a schedule of cash flows from operating activities. Tanucci Clothing Store's income statement follows. Tanucci Clothing Store Income Statement For the Year Ended June 30, 2014 Net sales Cost of goods sold: Beginning inventory Net cost of purchases Goods available for sale Ending inventory Cost of goods sold Gross margin Operating expenses: Sales and administrative salaries expense Other sales and administrative expenses Total operating expenses Income before income taxes Income taxes Net income $1,240,000 3,040,000 $4,280,000 1,400,000 $1,112,000 624,000 $4,900,000 2,880,000 $2,020,000 1,736,000 $ 284,000 78,000 $ 206,000 Additional information: (a) other sales and administrative expenses include depreciation expense of $104,000 and amortization expense of $36,000; (b) accrued liabilities for salaries were $24,000 less than the previous year, and prepaid expenses were $40,000 more than the previous year; and (c) during the year accounts receivable (net) increased by $288,000, accounts payable increased by $228,000, and income taxes payable decreased by $14,400. REQUIRED Using the direct method, prepare a schedule of cash flows from operating activities.

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In using the direct method to prepare a schedule of cash flows from operating activities various steps will be followed and considered Given the Net s... View the full answer