Use the direct method to determine cash flows from operating activities The following accounts and corresponding balances were drawn from Berry Company's 2012 and 2011 y ear -end balance sheets.

The 2012 income statement is shown below:

Required
a. Use the direct method to compute the amount of cash inflows from operating activities.
b. Use the direct method to compute the amount of cash outflows from operating activities.

Account Title 2012 2011 Accounts receivable Interest receivable Other operating expenses payable Salaries payable $42,000 6,000 22,000 15,000 $46,000 27,000 12,000