The following information was taken from the comparative financial statements of Dougal Industries, Inc., for the years ended December 31, 2011 and 2012:

Use the direct method to compute cash flows provided by operating activities in 2012.

Transcribed Image Text:

$ 80,000 1,100,000 850,000 Net income for 2012 Sales revenue Cost of goods sold. Depreciation expense for 2012 Interest expense on short-term debt for 2012 Dividends declared and paid in 2012 Utilities expense 75,000 10,000 30,000 5,000 Dec. 31, 2012 Dec. 31, 2011 Accounts receivable inet). Inventory Accounts payable $60,000 95,000 74,000 55,000 90,000 78,000